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Who are Ofgem and What Does it Do for Businesses?

Learn more about Ofgem, the Government department responsible for overseeing our gas and electricity supplies and suppliers. Learn about their role in the energy market and what it can do for your business…

Business energy contract due to renew? Call us on 0800 9777 000 or fill in our business quote form to see how much you could save…

Ofgem – The Office of Gas and Electricity Markets

The Office of Gas and Electricity Markets or Ofgem for short, is the independent energy regulator for Great Britain. Ofgem is responsible for ensuring that energy markets work fairly for domestic and non-domestic consumers; in real-world terms this means that it reviews pricing and set price caps on energy, allowing your overall energy cost to be priced on a standard tariff.

It’s a non-ministerial government department and an independent National Regulatory Authority

How are Ofgem governed?

Ofgem is governed by the Gas and Electricity Markets Authority (GEMA). This includes non-executive members, executive members and a non-executive chair. GEMA will determine strategies and policies and make decisions on a range of regulatory matters including price and enforcement. (More information can be found on the Ofgem website covering its role and responsibilities)

GEMA can enforce these regulations due to the following acts:

✔ Gas Act 1986
✔ Electricity Act 1989
✔ Utilities Act 2000
✔ Competition Act 1998
✔ Enterprise Act 2002
✔ Measures set out in a number of Energy Acts

How does Ofgem enforce its policies?

Ofgem operates with the framework that is set by parliament. Although Ofgem does comply with what the government at the time implements, it’s also there to support the consumer and will support them if it believes unfair regulations are, or are expected to be brought in. Ofgem regularly looks at improving the energy market including the impact that their changes will have on the consumer.

Ofgem has many responsibilities related to business energy, including:

✔ Setting standards for customer service and billing
✔ Promoting competition in the business energy market
✔ Innovating within the energy sector
✔ Ensuring a reliable supply of energy

What does Ofgem do specifically for businesses?

Although Ofgem oversees the whole energy market which includes both the business and domestic energy markets. For this guide, we’re specifically looking at their role in the business energy market.

Here are some specific examples of how Ofgem’s work relates to business energy:

✔ Require energy suppliers to provide business energy consumers with clear and accurate information
✔ Ofgem has set standards for the way that energy suppliers handle complaints from business energy consumers
✔ Ofgem monitors the business energy market
✔ Ofgem supports the development of new energy technologies
✔ Ofgem works with the government to develop energy policy

When should a business contact Ofgem?

When a business energy customer is struggling with their business energy contract there are plenty of places they can turn to get help, and Ofgem is one of them. Business energy consumers can contact Ofgem for help with a range of issues, including:

✔ Issues with energy bills
✔ A dispute with your energy supplier
✔ If a business energy consumer is not satisfied with the way that their complaint has been handled

What resources can Ofgem provide businesses?

✔ Information and advice on business energy contracts
✔ Helping to switch business energy suppliers
✔ Support for businesses struggling to pay their energy deals
✔ Advice on business energy efficiency

It is difficult to say whether Ofgem is an effective organisation as it’s a matter of opinion. When considering if Ofgem is an effective organisation we should consider the following:

Consumer protection

The sole reason that Ofgem exists is to ensure that the energy market and government policies don’t negatively affect the consumer and government policies. They must ensure that they have access to competitive prices and that switching suppliers is an easy task for them to do.

They ct on

Here are steps that Ofgem have taken to protect customers:

✔ Introducing a price cap
✔ Introduced a safeguarding tariff
✔ Improve customer service standards of energy suppliers
✔ Providing support to consumers

Competition in the energy sector

Ofgem should promote competition within the energy market which helps drive down prices and gives consumers more choices.

Here are a few steps that Ofgem have taken to ensure competition within the energy sector:

✔ New measures to easily switch suppliers
✔ Opening up energy markets
✔ Carry out market reviews

Innovation in the energy sector

Ofgem should also play a role in promoting innovation within the energy sector, this helps the UK transition into a low-carbon economy.

Here are some of the steps Ofgem have taken to improve innovations:

✔ Funding research and development
✔ New regulations on renewable energy and energy efficiency
✔ Develop new market mechanisms to support innovation


Ofgem should work hand in hand with the current government as well as the energy suppliers to deliver a net-zero economy by 2050.

A big step for Ofgem is to improve energy suppliers’ efficiency, here are a few things they’ve done to combat that:

✔ Setting targets on renewable energy
✔ Introducing new regulations
✔ Develop a new market mechanism

How to get in contact with Ofgem

Business energy consumers can contact Ofgem by:

Phone: 020 7901 7295

Email: consumeraffairs@ofgem.gov.uk

Website: www.ofgem.gov.uk

Ofgem is an important resource for business energy consumers. They can provide help with a range of issues, including billing problems, contract disputes, and complaints handling.

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If you have any other questions, take a look at our business energy guides section. Or contact our expert team of business energy brokers who are also available to answer any of your questions about our business gas and electricity comparison services.

Business energy contract due to renew? Call us on 0800 9777 000 or fill in our energy quote form to see how much you could save…