Ofgem

Overview

Ofgem is the regulator for Great Britain's gas and electricity markets. It sets the price cap on domestic energy tariffs, regulates network operators (DNOs and gas distribution), and enforces supplier obligations including switching, vulnerability protections, and smart meter rollout. Individual complaints go to the supplier first, then to the Energy Ombudsman.

What it handles

• Supplier compliance and licence breaches
• Network operator regulation
• Renewable Energy Guarantees of Origin (REGOs)
• Renewables Obligation and other support schemes

What it does not handle

• Individual consumer compensation — go to the Energy Ombudsman

Process

1. Step 1: Monitoring energy markets

   Ofgem monitors whether licensed suppliers and network companies meet the rules, gathering information from consumer bodies, company self-reporting, whistleblowers and its own research.

2. Step 2: Initial engagement

   Where Ofgem has credible information that a company might be breaching rules, it talks to the company first, asking for more information and sharing draft findings before deciding on further action.

3. Step 3: Investigation

   Ofgem's compliance and enforcement teams investigate companies it thinks may have breached licence conditions, regulations or laws.

4. Step 4: Independent decision

   Decisions on whether a company has breached the rules, and what penalty applies, are made by decision-makers who are independent of Ofgem's investigators.

5. Step 5: Enforcement outcome

   Where a company has broken the rules, Ofgem can fine it, order it to compensate consumers, order changes to its services, or require payment into a redress scheme.

Official sources