The Centre for Sustainable Energy (CSE) has submitted a detailed response to the government’s review of Ofgem’s mandate and duties, drawing on 45 years of experience supporting people in fuel poverty and delivering practical solutions for people, communities and local authorities to cut carbon emissions. 

We strongly support continuation of Ofgem’s principal objective of protecting the interests of existing and future consumers, however, our response highlights that there is less justification for it continuing to have a role ‘promoting effective competition’ than when it was first established in 2000. 

Our response recommends that Ofgem’s legal mandate should be redefined as “to protect the interests of existing and future consumers and drive up service standards across the energy industry” with special consideration for customer vulnerability, net zero targets, security of supply and enabling innovation. 

On Ofgem’s statutory duties, we support streamlining while emphasising that two key duties must be maintained: 

• Customer vulnerability. 
• Net zero targets. 

We also urge consideration of a new duty to promote fairness in the market to ensure no consumers are excluded from the benefits of the energy transition. 

With the creation of the National Energy System Operator (NESO), we’ve highlighted the need for Ofgem to adapt its regulatory approach. 

 “Ofgem’s regulatory function needs to adapt to take account of strategic energy planning, both nationally and regionally,” our response states.”There needs to be clearer direction from Ofgem around the expected role and performance of Distribution System Operators, with a stronger framework of common, comparable and agreed KPIs now.”

The response also emphasises that transmission network companies will need regulation to ensure their investment plans align with the Central Energy Strategic Plan, while distribution networks must commit to investments required for Regional Energy Strategic Plans. 

It’s unacceptable that in our current market people must choose between heating their home and eating or find themselves excluded from participating in the net zero transition. Ofgem as regulator needs to be at the centre of these changes, steering companies to deliver the economic, social and environmental outcomes we need. 

Other key recommendations from our response include: 

• Requiring more transparency from energy suppliers on their performance standards, including wait times, complaints, and provision of translation services. 
• Enhancing Ofgem’s powers to enforce higher standards for low carbon technology installations. 

We’re also particularly concerned about the failure of suppliers to address broken smart meters, which prevents vulnerable households from accessing the benefits of new flexibility tariffs and services. CSE is calling for stronger regulation requiring prompt repair of non-functioning smart meters. 

Our response highlights the need for automatic compensation to be extended to cover failure to fix smart meters, and for the Energy Ombudsman to have greater powers to compel suppliers to follow their recommendations.