If you want to know who Ofgem are and the vital role they play in the UK energy scene, then enlighten yourself with Confused.com‘s guide to everything you wanted to know about Ofgem – the UK energy regulator.
What does Ofgem do?
Ofgem promotes fair competition across the energy market and regulates the companies which dominate the gas and electricity networks.
Ofgem monitors the prices customers pay for their energy in the retail supply markets and then produces regular reports on energy-provider competition in the retail sector. It also reviews the various energy company processes for switching energy suppliers. Ofgem regulates energy providers by issuing licences, modifying licenses, laying price boundaries and penalising supplier misconduct.
Ofgem ensures that there is adequate investment in the energy networks (the energy networks basically refer to the energy suppliers who purchase gas and electricity for their customers).
On the environmental front, Ofgem aims to curb – through regulation – the effects of climate change, and also coaches the energy industry to improve environmental standards as a whole.
Ofgem’s Corporate Strategy and Plan are produced after consultation with stakeholders, and their powers are authorised under the Gas Act 1986, the Electricity Act 1989, the Utilities Act 2000, the Competition Act 1998 and the Enterprise Act 2002.
Who’s Behind Ofgem?
Ofgem are a UK-established organisation governed by an Authority made up of non-executive and executive members and a non-executive chair. The members offer expertise from a variety of areas such as social policy, environmental work, industry and finance.
Fundamentally, the Authority outlines and implements strategy regarding the improvement of the gas and electricity market, whilst prioritising policy issues and making decisions that will ultimately benefit energy consumers.
Even though it is funded by an annual license fee that the energy companies are obliged to pay, Ofgem is completely independent of the companies it regulates.
How Can Ofgem Help You?
Ofgem helps by looking out for your best energy interests. Ofgem’s main priority is to promote choice and value in the energy market for gas and electricity consumers. In a nutshell, Ofgem exists to help us all get a fair deal.
It also monitors circumstances where energy providers try to prevent consumers from switching energy suppliers. Ofgem also stops companies from communicating misleading information to customers.
However, if you feel you have been treated unfairly by an energy provider, or just want to make a general complaint, Consumer Focus – the gas and electricity watchdog – is the body to contact (after first speaking to your energy provider, that is). Ofgem and Consumer Focus work closely to ensure that energy company performance issues are effectively monitored.
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