Ofgem
This is a name you will see a lot, but few of us know what Ofgem stands for and what it actually does.
Basically, it fights the consumer’s corner when it comes to choice and value with their supply of electricity and gas. In other words, they are there to stop you being ripped off by the big energy companies. But, it’s important to note that they are there to deal with the bigger picture, and not really individual consumer problems. More on that later.
The name Ofgem derives from The Office of Gas and Electricity Markets, reporting to the Gas and Electricity Markets Authority (GEMA). Ofgem acts as the government regulator for the electricity and natural gas markets in the U.K.
Ofgem was formed following the merger of the Office of electricity Regulation (OFFER) and the Office of Gas Supply (Ofgas). It gets its authority from a number of government acts, including the Competition Act 1998, the Utilities Act 2000 and the Energy Act 2004.
Like most government regulators, it’s not without its critics and many consumer groups feel that it has not been quick enough, or effective enough, to cope with the impact of the dramatic energy rises throughout 2008. The often quoted example of Ofgem’s lack of teeth is when Centrica announced in July 2008 a gas price rise of 35%. This price hike seemed to many to highlight the lack of real competition in the European gas market.
Ofgem of course would reject those accusations, saying that protecting consumers is it first priority. Have a look at their website, ofgem, and they make a big play of being the electricity and gas markets referee, claiming they help secure the country’s energy supplies by promoting competitive markets; ensuring that there is adequate investment; making sure the environment is not forgotten; and, looking after the needs of vulnerable customers.
It considers itself a very transparent organisation, doing its utmost not to hide any of its internal workings. It’s funded by the companies it regulates.
But remember that Ofgem does not directly deal with your complaint. In the first instance, that should be taken up with your energy supplier. If that doesn’t work, then you should contact Consumer Direct.
This is funded by the Office of Fair Trading and works in conjunction with the Local Authority Trading Standards Services.
Contact with Consumer Direct is via telephone and the internet. This acts as a first stop when you have a complaint. It might well be dealt directly with them, or passed on to the appropriate body.
You can telephone them on 08454 04 05 06, or via their online complaint and enquiry service: www.consumerdirect.gov.uk.
If you feel that you need more specific help when dealing with the energy companies, such as your billing, then you can always go to The Energy Supply Ombudsman who deal with complaints against the supply companies and network operators.
These can be contacted on telephone 0845 055 0760, or email:
enquiries@energy-ombudsman.org.uk.
But if you still need to have a go at Ofgem, they have a Consumer affairs Team which can be contacted on telephone 020 7901 7295, or email: consumeraffairs@ofgem.gov.uk.
So there you have it: Ofgem, champion of the people, or ineffective government regulator?
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