Ofgem is the Office of the Gas and Electricity Markets. Protecting consumers is our first priority. We do this by promoting competition, wherever appropriate, and regulating the monopoly companies which run the gas and electricity networks. The interests of gas and electricity consumers are their interests taken as a whole, including their interests in the reduction of greenhouse gases and in the security of the supply of gas and electricity to them.

Other priorities and influences include:
helping to secure Britain’s energy supplies by promoting competitive gas and electricity markets - and regulating them so that there is adequate investment in the networks, and
contributing to the drive to curb climate change and other work aimed at sustainable development by, for example:

helping the gas and electricity industries to achieve environmental improvements as efficiently as possible; and
taking account of the needs of vulnerable customers, particularly older people, those with disabilities and those on low incomes.


How are we governed?

Ofgem is governed by an Authority, consisting of non-executive and executive members and a non-executive chair. Non-executive members bring experience and expertise from a range of areas including industry, social policy, environmental work, finance and Europe.

The Authority determines strategy, sets policy priorities and takes decisions on a range of matters, including price controls and enforcement. The Authority's powers are provided for under the Gas Act 1986, the Electricity Act 1989, the Utilities Act 2000, the Competition Act 1998 and the Enterprise Act 2002. Further information is available in the Authority section of the website.


Transparency

Ofgem endeavours to keep its operations transparent. Examples of practices that demonstrate this include:
publishing the minutes of its Authority meetings;
an annual open meeting of the Authority; and
full and thorough consultation in developing decisions (including the development of its corporate strategy).


How are we funded?

We recover our costs from the licensed companies we regulate. Licensees are obliged to pay an annual licence fee which is set to cover our costs. Ofgem is independent of the companies we regulate.

We operate under a five-year cost control regime that runs 2010-2015. It pegs our expenditure growth at 3 percentage points below the retail price index. This is expected to result in savings of £12.5 million.