Who we are

Ofgem stands for the Office of Gas and Electricity Markets. We are the energy regulator for Great Britain. Our role is to protect the interests of energy consumers.

We are a non-ministerial government department. That means that we are headed by a senior civil servant instead of a minister. 

We work with energy companies, consumer groups, charities, government, and the National Energy System Operator on a clean, fair, secure energy system.

What we do

We regulate the energy markets. Energy companies need licences to take part in the energy markets and networks. These licences set the rules on how companies should make, transport and sell energy. This includes how much companies can charge for energy and how customers are treated. 

We write these rules, monitor how energy companies operate and take action when they do not follow the rules.

Our priorities and duties

We are responsible for:

• Protecting the interests of all consumers from potential harms, especially those who need extra help
• Making sure homes, businesses and non-domestic properties get affordable, secure, and reliable energy  
• Making sure everyone receives a high-quality service from energy companies
• Transforming how we produce, transport and use energy so that it is sustainable and helps achieve Net Zero
• Promoting effective competition and enabling innovation so that new products and services are available to consumers
• Introducing new measures so that network companies can become more financially resilient and finance their activities without taking unnecessary risks
• Investigating suspected breaches of competition law and taking enforcement action where needed
• Developing new regulatory frameworks for heat networks and low carbon technology, particularly nuclear, carbon capture and storage, and hydrogen
• Creating a framework for responsible use of artificial intelligence in the energy sector.

As part of our duty, we also consider how the UK economy is affected by any decisions we make. We will continue to support sustainable economic growth in the energy sector by improving investment, productivity and stability in the long term.

We work with government departments, the National Energy System Operator, the energy industry, and others to achieve Net Zero by 2050. Net Zero is a government policy that we should not produce more greenhouse gases than we can remove. 

Our role is to make sure that the energy system can move from fossil fuels to clean energy sources and use technologies such as carbon storage in an effective and efficient way. Our rules and guidelines support economic growth, Net Zero and innovation. For example, by making investments in clean energy projects more attractive. 

We also administer environmental and social schemes on behalf of the government.

How we work

Our powers and duties as the energy markets regulator are set out in the government’s energy policy for Great Britain and Energy Act 2023. We decide what our strategic priorities are and how a policy outcome should be achieved.

Our strategy and plans

Our priorities align with government policies on clean power energy and Net Zero, protecting consumers and making sure the energy system meets future needs.

Our governance and transparency

We are open about how decisions are made at Ofgem and who makes these decisions.