Office
of Gas and Electricity Markets - OFGEM - Regulator for Britain's
gas and electricity industries.
About
the Office
of Gas and Electricity Markets - OFGEM
The
first priority of Ofgem’s is to protect consumers. They do
this by promoting competition, wherever appropriate, and regulating
the monopoly companies which run the gas and electricity networks.
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
- 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 Ofgem 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 Executive members of
the Authority are Ofgem’s Chief Executive and three Managing
Directors. 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.
Transparency
Ofgem tries 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
- full
and thorough consultation in developing decisions (including the
development of its corporate strategy)
How
are Ofgem funded?
Ofgem
recover their costs from the licensed companies they regulate. Licensees
are obliged to pay an annual licence fee which is set to cover our
costs. Ofgem is independent of the companies they regulate. They
operate under a 5 year cost control regime that runs 2004-2009.
It pegs their expenditure growth at three percentage points below
the retail price index. This will reduce their costs by more than
five million pounds in real terms by 2010.
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