Policy Brief & Suggested Reform for Ofgem

Abstract

The Office for Gas and Electricity Markets (Ofgem) is the energy regulator for England, Scotland, and Wales, with its primary role being to protect consumers' interests.^[1] Its responsibilities include regulation, licensing, and monitoring of the energy supply chain.^[2] The energy trilemma of balancing affordability, supply security and sustainability is not unique to Ofgem and has been at the forefront of energy policy discussions.^[3] What is unique about Ofgem is its net-zero by 2050 policy, which came into force in June 2019.^[4] This requires Ofgem to reduce greenhouse gas emissions to 0% by 2050 while addressing the energy trilemma.^[5] On December 19^th, 2024, the UK Government sought evidence and views from stakeholders to revisit Ofgem's role as an energy market regulator.^[6] The ‘Review of Ofgem: call for evidence’ concluded on February 28^th, 2025.^[7] This briefing addresses a hypothetical situation where the views of a theoretical company, PowerSwitch, were requested. Questions posed to ascertain PowerSwitch’s views were like those asked of stakeholders in the original call for evidence. The first question posed was ‘Should Ofgem’s duties be streamlined, and if they should, views on which goals might be prioritised’.^[8] The second question posed was “Views on Ofgem having enhanced investigatory powers and if they should be granted enhanced enforcement powers similar to CMA”.^[9] This briefing outlines: (a) key historical events impacting Ofgem’s role; (b) Ofgem’s trilemma and order of priority; (c) Ofgem’s effectiveness of regulatory and concurrent powers; (d) PowerSwitch's views which may be expressed in the call for evidence.

[1] Ofgem, ‘About Us’ accessed 14 September 2026.

[2] ibid

[3] Department for Energy Security and Net Zero, 'Ofgem Review: Final Report' (GOV.UK, 22 April 2026) accessed 14 September 2026.

[4] The Climate Change Act 2008 (2050 Target Amendment) Order 2019, SI 2019/1056, Explanatory Note accessed 14 September 2026.

[5] ibid

[6] Department for Energy Security and Net Zero, 'Review of Ofgem: Call for Evidence' (GOV.UK, 19 December 2024) accessed 14 September 2026.

[7] ibid

[8] Department for Energy Security and Net Zero, 'A Review of Ofgem: Call for Evidence – Summary of Responses' (GOV.UK, 22 April 2026) 11
accessed 14 September 2026.

[9] ibid 19.