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Regulating the Competitive Market and Protecting Customers

The legal framework for gas and electricity supply is set by the Gas Act 1986 and the Electricity Act 1989, which have subsequently been amended, particularly by the Utilities Act 2000.  Post-1988 legislation can be accessed via the Office of Public Sector Information website.

Ofgem

When the Government privatised the gas and electricity industries, it established independent regulators in each sector.  In 2000, these regulators were formally combined as the Gas and Electricity Markets Authority (GEMA), known as OFGEM, a non-Ministerial Department that reports to the Public Accounts Committee of the House of Commons.  OFGEM does not investigate individual customer complaints, but takes regulatory action where necessary, usually in the light of a pattern of behaviour by a company.  It primarily regulates through secondary legislation and the conditions applied to suppliers in standard licences.  The Government has given OFGEM the power to levy financial penalties of up to 10% of turnover on gas and electricity companies.

Energywatch

The Gas and Electricity Consumer Council (GECC), known as Energywatch, was also established in 2000.  Energywatch is sponsored by DTI.  Energywatch has a range of duties, including providing information to customers, investigating complaints against gas and electricity suppliers and distributors and advising Government and other policy-making bodies.