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Ofgem

Office of Gas and Electricity Markets

Industry Bodies

The independent regulator for gas and electricity markets in Great Britain, responsible for protecting consumers and ensuring energy networks operate fairly and efficiently.

Ofgem oversees the energy industry, from setting price controls that determine how much network companies can charge, to licensing suppliers and network operators, to investigating complaints and enforcing rules.

Key regulatory activities:

  • Setting RIIO (Revenue = Incentives + Innovation + Outputs) price controls for DNOs
  • Approving charging methodologies (CDCM, TNUoS, BSUoS)
  • Licensing suppliers and network operators
  • Investigating supplier compliance
  • Managing supplier of last resort when companies fail
  • Administering exemption schemes (e.g., Climate Change Agreements for CCL relief)

Major Ofgem-driven reforms:

  • Targeted Charging Review (TCR) - restructured TNUoS charges
  • MHHS oversight - Market-wide Half-Hourly Settlement
  • Access and Forward-Looking Charges - future distribution charging

For consumers: If you have a serious complaint about your energy supplier or network operator that can't be resolved directly, Ofgem is ultimately responsible for ensuring companies meet their licence obligations. However, for most billing disputes, you'd first go through your supplier and then the Energy Ombudsman before Ofgem involvement.

Related terms

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