The electricity and gas you use at home is generated and distributed by private power companies.
Why regulate electricity and gas?
The electricity and gas market in Great Britain is competitive, which means you can choose the electricity and gas suppliers that best suit your needs or budget. But without regulation, this could lead to concerted price hikes between suppliers or some suppliers being more reliable than others, when energy is a fundamental part of daily life.
- Energy regulation aims to protect the consumer, i.e., you.
- Laws and institutions are responsible for ensuring the market is transparent and fair so you have access to the best possible energy offers and understand what they entail.
- Energy regulation also ensures the upstream process runs smoothly to avoid price hikes and ensure security of supply.
What is the legal framework regulating the energy industry in the UK?
Because the UK energy market became competitive quite early, various laws frame its activities to ensure market fairness and consumer rights.
Who regulates energy in the UK?
Ofgem is the electricity and gas regulator in the UK. Find out more about them and how their reports, recommendations and policies affect the domestic energy market in Great Britain.
The Department of Energy and Climate Change works closely with Ofgem on a number of issues and its policies have an direct impact on energy prices. You might be interested to know what DECC does, too.