OFGEM controls the prices charged by National Grid Transco

1
The Regulator

• OFGEM controls the prices charged by National
  Grid (Transco)
• and the Distribution Companies
• These are natural monopolies.
• Transmission and distribution make up around
  25-30 per cent of the
• average domestic bill.
• BUT
• OFGEM also has a duty to ensure the companies
  can finance
• investment needed to rewire Britain.
• Rewiring is necessary with increased use of
  Renewables.

2
Consumer Protection

• Energywatch set up by the Utilities Act
  (2000).
• Funded by Department of Trade and Industry
• Funding comes from the licence fee paid by all
  energy
• companies
• It looks after consumers interests and deals
  with complaints
• Energywatch is accountable to the DTI.
• Energywatch is separate from OFGEM.
• Two organisations work closely together.
• Relationship with OFGEM is set out in a
  Memorandum of
• Understanding.

3
Consumer Protection

• Energywatch
• Some key projects currently underway by
  Energywatch
• Dealing with Rogue Traders who try to get
  people to switch
• suppliers
• Dealing with late and inaccurate bills
• In 2002/2003 Energywatch had
• 45,546 account, billing and other complaints (up
  from 37,075)
• 34,027 transfer complaints (up from 30,743)
• 12,960 direct selling complaints (up from 6,991)

4
Metering

• Specialist Metering Companies have entered market
  since 1998.
• Siemens Energy Services is now the largest
  independent supplier of metering services.
• It reads gas and electricity meters throughout
  the UK
• Processes customer data and handles the payment
  of bills.
• Siemens covers nearly 8 million households
  (around one-third)
• It provides a metering service for
• British Gas,
• Powergen,
• npower,
• Scottish Power,
• Scottish Southern Energy.

5
Provision of Comparison Services