Office of Gas and Electricity Markets

Ofgem (Office of Gas and Electricity Markets) is the regulator for gas and electricity markets in Great Britain, established under the Gas Act 1986 and Electricity Act 1989. It sets the Energy Price Cap — a limit on the unit rates and standing charges that default tariff customers pay — which is reviewed quarterly. Ofgem licences energy suppliers and network operators and can revoke licences and impose financial penalties for non-compliance. Consumers who cannot resolve a complaint with their energy supplier after 8 weeks (or on receipt of a deadlock letter) can refer it free of charge to the Energy Ombudsman. Ofgem does not handle individual complaints directly. The Guaranteed Standards of Performance (GSoP) entitle consumers to automatic compensation when a supplier or network operator fails to meet service standards — for example, if a supplier fails to respond to a complaint within the required period. Contact Citizens Advice (0808 223 1133) for free energy consumer advice.

What it means in practice. Ofgem shapes your bill without ever appearing on it. The price cap limits unit rates and standing charges on default and standard variable tariffs, so it sets a ceiling rather than a fixed price, and it does not cap your total bill — use more energy and you pay more. Ofgem also writes the supply licence conditions that give you concrete rights: the back-billing rule preventing suppliers charging for unbilled energy more than twelve months old, the Priority Services Register for people who are older, disabled, or chronically ill, and strict rules on when a prepayment meter can be installed.

A worked example. Two years after moving in, Andrew receives a catch-up bill for £1,900 because his supplier never billed him correctly. He complains in writing, citing the back-billing rule. The supplier can only charge for the most recent twelve months of unbilled energy, so the vast majority of the demand is written off. Because the supplier initially refuses, he waits the eight weeks, obtains a deadlock letter, and refers the case to the Energy Ombudsman, which orders the correction plus a goodwill payment for the distress and the time he spent chasing it.

Common pitfalls. Complaining to Ofgem itself is the most common wasted step — it regulates suppliers but will not resolve your individual bill. People also miss the automatic Guaranteed Standards payments, which are due without any claim when a supplier or network operator fails to meet a service standard, and are worth checking after any switching delay or prolonged power cut. And self-disconnecting to avoid debt is dangerous and unnecessary: tell the supplier you are struggling, which triggers obligations to offer an affordable repayment plan.

How it relates to other terms. Ofgem is a regulator, so individual redress comes from the Energy Ombudsman — see ombudsman — once you hold a deadlock letter or eight weeks have passed. The referral is a form of alternative dispute resolution, and faulty goods or workmanship supplied alongside energy, such as a botched boiler installation, may also engage the Consumer Rights Act 2015.

What to do next. Read our energy complaints guide to put the complaint in writing and start the eight-week clock, and use billing disputes if the argument is about how much you have been charged. When the deadline passes, follow escalating complaints to the ombudsman.