Who are Ofgem?
The Office of Gas and Electricity Markets (Ofgem) is the independent energy regulator for Great Britain. It is their responsibility to guide and regulate the decisions and behaviours of energy companies, like us, to help us ensure that our customers are treated fairly and can benefit from a cleaner environment. As part of this responsibility, Ofgem reviews energy prices and sets the price cap, which determines how much you will pay for your energy on a standard tariff.
What does an energy regulator do?
Price cap. Every three months Ofgem reviews energy prices and sets a new energy price cap. Learn more about the price cap.
Net zero. They work with the government, the energy industry, and consumers to find the best way to deliver net zero at the lowest cost to energy customers. Find out how E.ON Next is working towards net zero.
Fair treatment. They monitor the energy industry to ensure all energy customers, and particularly vulnerable customers, are treated fairly - and work to stamp out bad business practices.
Drive competition. They enable competition in the energy market to drive down energy prices and encourage the creation of new products and services.
Price cap explained.
Understanding your energy prices can feel confusing. That’s why we’ve broken it down the energy price cap for you in this video. Plain and simple.
What actions can Ofgem take?
Ofgem have been granted several powers by parliament to help them deliver on their responsibility to consumers. These include:
Setting regulations for the energy industry.
Investigating energy companies if they suspect they have breached their licence, consumer protection, or competition law.
Requiring energy companies to disclose information.
Setting fines and enforcement orders if a breach happens.
How is Ofgem independent?
Ofgem is not a part of the government or associated with any energy company. They are funded by mandatory licence fees paid by the energy companies they regulate. This protects them from conflict of interest, so they can represent consumer interests without bias.
Can Ofgem create new energy laws and policies?
Ofgem does not set energy policies, this is the role of the government. They must act according to government policies, but they can and do call out gaps where they think consumers (like you) are not being protected fairly.
Visit their website for more information about Ofgem’s role and responsibilities as energy regulator.
Contact our Energy Specialists if you’re having difficulty.
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