Misplaced Pages

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48-474: In the British electricity market, different functions of the electricity system are separated, with this practice beginning in the 1980s. The activities of generators, transmission operators, system operators, distribution operators and suppliers are separately licensed by Ofgem , with a single business unable to perform multiple functions due to UK Competition Law. The groundwork for the offshore transmission regime

96-556: A fuel was still being marketed to consumers, by such means as the National Gas Congress and Exhibition in 1913. The gas used in the 19th and early 20th centuries was coal gas , but in the period of 1967–77, British domestic coal gas supplies were replaced by natural gas . In 1948, Clement Attlee 's Labour government reshaped the gas industry, bringing in the Gas Act 1948. The act (on the vesting date of 1 April 1949) nationalised

144-399: A cap on standard variable tariffs for energy customers, to be designed and implemented by Ofgem. The Domestic Gas and Electricity (Tariff Cap) Act 2018 (c. 21) received royal assent on 19 July 2018. It stipulated that the price cap would be in place from the end of 2018 until 2020, when Ofgem would recommend whether the cap should remain on an annual basis up to 2023. Ofgem would also review

192-437: A loss of approximately 680 jobs. In May 2018, Centrica announced that British Gas had lost 100,000 customers since the start of the year. However, the parent company was still likely to hit its targets of 2018, and pay dividends of 12p per share. British Gas was led by chief executive, Sarwjit Sambhi, who oversees a business that provides energy and services to around ten million homes, and employs over 28,000 staff based across

240-478: A series of media stories highlighting their poor customer service and practice of breaking into homes to force people onto pre-payment meters. After an internal enquiry, they announced they would no longer use the third-party contractor responsible. In a 2023 review, the UK government regulator for the energy sector, Ofgem , found that British Gas had 'moderate weaknesses' with their customer service processes, alongside

288-539: A speed limiter, designed by Siemens . The deal was renewed in September 2015. In 2020 British Gas announced they would be introducing an all electric fleet of vans, with all diesel vehicles to be replaced by 2025. The company are currently replacing diesel vehicles with the Vauxhall Vivaro-e. In April 2021, British Gas changed the contractual terms and conditions for thousands of its workers. Those who did not accept

336-559: A £12 million redress levy on E.ON in May 2014, and a £1 million redress levy on British Gas in July 2014. The Gas and Electricity Markets Authority is governed by the Chairman Martin Cave, executive members as well as non-executive members. Jonathan Brearley was appointed Chief Executive of Ofgem from February 2020. The liberalisation and privatisation of the energy markets in

384-515: Is an energy and home services provider in the United Kingdom . It is the trading name of British Gas Services Limited and British Gas New Heating Limited, both subsidiaries of Centrica . Serving around ten million homes in the United Kingdom, British Gas was the largest energy supplier in the country until 2024 when it was overtaken by Octopus Energy . It remains the largest gas supplier. It

432-500: Is considered one of the Big Six dominating the gas and electricity market in the United Kingdom. The Gas Light and Coke Company was the first public utility company in the world. It was founded by Frederick Albert Winsor and incorporated by royal charter on 30 April 1812 under the seal of King George III . It continued to thrive for the next 136 years, expanding into domestic services whilst absorbing many smaller companies including

480-733: Is the government regulator for the electricity and downstream natural gas markets in Great Britain . It was formed by the merger of the Office of Electricity Regulation ( OFFER ) and Office of Gas Supply ( Ofgas ). The authority's powers and duties are largely provided for in statute (such as the Gas Act 1986 , the Electricity Act 1989 , the Utilities Act 2000 , the Competition Act 1998 ,

528-505: Is the Competent Authority responsible for approving ADR entities in the energy sector. Ofgem has only ever approved one ADR entity: Ombudsman Services. Ofgem launched an Energy Industry Voluntary Redress Scheme in 2018 to redistribute money paid by energy companies who have breached their operating licence conditions. Recipients of the fund include vulnerable energy consumers and developers of energy products and services that reduce

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576-531: Is to protect existing and future consumers' interests in relation to gas conveyed through pipes and electricity conveyed by distribution or transmission systems. Consumers' interests are their interests taken as a whole, including their interests in the reduction of greenhouse gases and in the security of the supply of gas and electricity to them. Since 2010 the Authority has imposed nearly £100 million in fines and redress levies against energy suppliers, including

624-661: The Enterprise Act 2002 and the Energy Act 2004 , the Energy Act 2008 and the Energy Act 2010 ) as well as arising from directly effective European Union legislation. Duties and functions concerning gas are set out in the Gas Act and those relating to electricity are set out in the Electricity Act. Its primary duty is to protect the interests of consumers, where possible by promoting competition. The Authority‘s main objective

672-475: The Utilities Act 2000 , designed to protect national security, relating to concerns about smart meters and Renewable Heat Incentive projects. Under the Alternative Dispute Resolution for Consumer Disputes Regulations 2015, if an energy company fails to resolve a complaint through their own customer service efforts they will be required to advise the consumer of an approved ADR body. Ofgem

720-459: The "gas board", a term still sometimes used when referring to British Gas. In addition, the Gas Act established the Gas Council , its constitution was such that control lay effectively with the area boards. The council consisted of a chairman and deputy chairman, both appointed by the minister, and the chairmen of each of the twelve area boards. The council served as a channel of communication with

768-855: The Aldgate Gas Light and Coke Company (1819), the City of London Gas Light and Coke Company (1870), the Equitable Gas Light Company (1871), the Great Central Gas Consumer's Company (1870), Victoria Docks Gas Company (1871), Western Gas Light Company (1873), Imperial Gas Light and Coke Company (1876), Independent Gas Light and Coke Company (1876), the London Gas Light Company (1883), Richmond Gas Company (1925), Brentford Gas Company (1926), Pinner Gas Company (1930) and Southend-on-Sea and District Gas Company (1932). On 1 May 1949,

816-594: The British Gas retail brand. British Gas acquired Dyno-Rod in October 2004. In April 2016, it was announced that 224,000 residential customers had left the company, citing customers coming to the end of their fixed deals and then moving on to other suppliers as the main reason for this loss. In the same month (April 2016) British Gas also announced it would be closing a call centre and office in Oldbury (West Midlands), with

864-474: The GLCC became the major part of the new North Thames Gas Board , one of Britain's twelve regional gas boards after the passing of the Gas Act 1948 by Clement Attlee 's post-war Labour government . In the beginning of the 1900s, the gas market in the United Kingdom was mainly run by county councils and small private firms. At this time the use of a flammable gas (often known as " town gas ") piped to houses as

912-542: The London stock market. To encourage individuals to become shareholders, the offer was intensely advertised with the "If you see Sid...Tell him!" campaign. The privatisation was criticised by Baron Gray of Contin who said it broke a key part of the Conservative's 1983 manifesto that the party would not simply replace one monopoly with another; at the time, British Gas was the only organisation that could supply gas to anyone in

960-615: The Penguin. In 2023 British Gas began a five-year partnership with the British Olympic Association and the British Paralympic Association. British Gas is a supplier of both gas and electricity for homes across the country. However the infrastructure (pipes) which delivers the gas to consumers is owned and maintained by other companies. Similarly, the network of towers and cables that distributes their electricity

1008-583: The United Kingdom began with the Margaret Thatcher Government in the 1980s (often called the Thatcher-Lawson agenda, due to the key role of Nigel Lawson in the Thatcher government cabinet). Aspects of the UK's model have been adopted by EU legislation. The privatisation of the gas and electricity supply industries was enacted by the Gas Act 1986 and the Electricity Act 1989 . Section 1 of

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1056-400: The United Kingdom. A further seven hundred job cuts in the United Kingdom were announced by Centrica in July 2019, amid growing marketplace challenges, which include the loss of 742,000 customers in 2018, and the government's price cap. In May 2007, British Gas signed a deal which saw 1,000 Volkswagen Caddy vans being supplied to the firm, which were fitted with a bespoke racking system and

1104-452: The abuse of market power, and provide Ofgem with sufficient power to tackle any abuse. Moreover, consumer surveys showed good awareness of the ability to switch, high and rising switching rates away from the former monopoly suppliers, and substantial and continuing falls in their market shares. Two years after the removal of the last price controls, in April 2004, Ofgem published a major review of

1152-452: The area boards, was appointed and supervised by the Secretary of State for Trade and Industry until 1974, when those powers were vested in the newly created position of Secretary of State for Energy . The Conservative Government, led by Prime Minister Margaret Thatcher introduced the Gas Act 1986 , which led to the privatisation of the company, and on 8 December 1986, its shares floated on

1200-558: The beginning of the 1970s, the gas industry was again restructured after the Gas Act 1972 was passed. The act merged all the area boards, created the British Gas Corporation and abolished the Gas Council. From its inception, the corporation was responsible for development and maintenance of the supply of gas to Great Britain, in addition to satisfying reasonable demand for gas throughout the country. Its leadership, like that of

1248-475: The beginning of the 1990s, one advertisement included Cheryl Tweedy as a small child, more than ten years before the beginning of her pop music career. In November 2012, the Information Commissioner's Office publicly listed British Gas as one of a number of companies that it had concerns about due to complaints of unsolicited marketing telephone calls. In response, British Gas said that "We uphold

1296-418: The changes by midday on 14 April 2021, were told to leave the firm. This resulted in a public outcry over the treatment of long-time workers, in particular over social media and with support from workers' unions and the opposition Labour Party . In response, British Gas workers went on strike between January and June 2021, when workers accepted a new pay deal. In 2023, British Gas came under criticism after

1344-533: The country. In February 1997, eleven years after it had been privatised, British Gas plc demerged to become the entirely separate BG Group and the Gas Sales and Gas Trading, Services and Retail businesses. The Gas Sales and Gas Trading and Services and Retail businesses, together with the gas production business of the North and South Morecambe gas fields, were transferred to Centrica , which continues to own and operate

1392-588: The energy market as well as provide the certainty investors have called for," Ofgem CEO Dermot Nolan in announcing the investigation. In August 2016 Ofgem said that it would implement the CMA's recommendation that suppliers should be required to provide the details of customers who have been on expensive tariffs for three years or more to rival suppliers. Ofgem also said that it would impose an interim price cap on customers using pre-payment meters. In October 2017, Prime Minister Theresa May announced her intention to introduce

1440-1184: The environmental impact. The scheme is managed by the Energy Saving Trust . Notable payments into the scheme include: £12.5m from PayPoint for breaking the 1998 Competition Act; £8.9 from OVO Energy for overcharging customers; £4.5m from Hornsea Wind Farm , £4.5m from Npower and £1.5 from UK Power Networks for failing to remain connected after a lightning strike causing a widespread blackout on 9 August 2019 ; £2.8m from OVO Energy, £2m from Scottish Power , £1.3m from British Gas , £1.2m from Shell Energy , £1m from SSE plc and amounts from £7k to £713k from 13 other energy suppliers for overcharging between 2013 and 2020; £1.5m from Utility Warehouse for treating customers unfairly and increasing their financial distress; and £1m from SSE plc for sending inaccurate customer statements. Directors General of Ofgas Director General of OFFER Chair and Chief Executive of Ofgem Chair of Ofgem Chief Executive Officer of Ofgem British Gas plc British Gas (trading as Scottish Gas in Scotland )

1488-420: The exemption from this requirement lapses. Divestment is managed via a regulated tender process administered by the energy regulator Ofgem . Qualifying bidders are required to conduct due diligence before submitting a bid to purchase the assets for transfer value determined by Ofgem and receive their bid Tender Revenue Stream (TRS) for a fixed license period. Ofgem then appoints a Preferred Bidder who negotiates

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1536-604: The finances of supplier companies, and that the government overlooked this lack of supervision because it prioritised competition over market regulation. In response, Ofgem accepted that its previous financial resilience regime was not sufficiently robust, and had contributed to some of the supplier failures since August 2021. In September 2018, the Guardian published a report claiming that two Ofgem experts had been independently threatened with criminal sanctions if they publicly revealed information. Ofgem allegedly invoked section 105 of

1584-532: The gas industry in the United Kingdom and 1,062 privately owned and municipal gas companies were merged into twelve area gas boards , each a separate body with its own management structure. The twelve gas boards were: Eastern, East Midlands, Northern, North Eastern, North Thames , North West, Scottish , Southern, South Eastern, South West, Wales, and West Midlands. Each area board was divided into geographical groups or divisions which were often further divided into smaller districts. These boards simply became known as

1632-487: The highest standards when contacting people in their homes, and only use contact information if we have express permission to do so". In July 2014, regulator Ofgem reached an agreement with British Gas for the company to pay £1 million in compensation to hundreds of people, who had been advised to switch from other suppliers to British Gas by British Gas advisers using exaggerated claims. On 20 September 2015, British Gas launched an advert, including their new mascot, Wilbur

1680-538: The industry to set up and fund the Energy Supply Ombudsman in response to concerns over the handling of customer complaints. Ofgem's Energy Supply Probe, published in 2008 after increases in world fuel prices led to the doubling of the energy bill for a typical household, found that the market was still dominated by the " Big Six " suppliers: more than 70% of customers were still with their former monopoly suppliers, and new entrants had captured less than 0.3% of

1728-541: The level of the cap at least every six months; from October 2022 reviews were to be conducted every three months, to reflect volatility in wholesale prices. Ofgem refers to this mechanism as the "default tariff" price cap, to distinguish it from the "prepayment" price cap, its other energy price cap. Between July 2021 and May 2022, 29 retail suppliers of gas and electricity collapsed, largely due to unprecedented increases in wholesale gas prices. Ofgem arranged for their customers to be transferred to other companies but this

1776-641: The majority of suppliers. They are described as the "worst firm to be moved to" by MoneySavingExpert.com after a 2022 survey. British Gas has actively been involved in sports sponsorship since the early 2000s. This includes a six-year, £15 million deal with British Swimming between 2009 and 2015, encompassing the London 2012 Olympics . From 2006 to 2009, it sponsored the Southern Football League of England . The company's extensive television advertising has featured many high-profile individuals, and in

1824-407: The market. Ofgem implemented a number of measures which improved the information provided to customers and made it easier for them to switch suppliers. The Big Six were obliged to separate their accounting for the supply and generation businesses, and Ofgem noted concerns over market abuses and unfair pricing. In June 2014 Ofgem announced a Competition and Markets Authority (CMA) investigation into

1872-479: The minister; undertook labour negotiations; undertook research; and acted as spokesperson for the gas industry generally. The Gas Act 1965 shifted the balance of power to the centre: it put the Gas Council on the same footing as the area boards, with the powers to borrow up to £900 million, to manufacture or acquire gas and to supply gas in bulk to any area board. In May 1968, the Gas Council moved to large new offices at 59 Bryanston Street, Marble Arch , London. In

1920-565: The purchase terms with the Developer, after which Ofgem awards a transmission license and the transfer takes place. This article about energy , its collection, its distribution, or its uses is a stub . You can help Misplaced Pages by expanding it . Ofgem The Office of Gas and Electricity Markets ( Ofgem ), supporting the Gas and Electricity Markets Authority ( GEMA, the Ofgem Board ),

1968-469: The regulators set price controls which fixed the maximum price that the monopoly suppliers could charge domestic customers. These controls remained in place when markets started to be liberalised, and were removed in stages between 2000 and 2002. Ofgem's decision to remove price controls was based on their assessment that competition was developing well at that time and that the Competition Act 1998 , being effective since March 2000, would deter companies from

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2016-496: The regulators were prescribed in Section 4 of the Gas Act 1986 and Section 3 of the Electricity Act 1989. Starting in the 1990s, the supply of electricity and gas to retail consumers in the UK has been unbundled from the rest of the industry. At the time of privatisation, British Gas and the regional public electricity suppliers held a monopoly on supplying all domestic gas and electricity consumers respectively. In 1997, British Gas

2064-604: The respective Acts created the roles of Director General of Gas Supply and the Office of Gas Supply (Ofgas), and the Director General of Electricity Supply and the Office of Electricity Regulation (OFFER). These were economic regulators independent of government, but accountable to Parliament. This arrangement separated their regulatory decisions from political control in order to provide greater long term regulatory certainty and to encourage market entry and investment. The duties of

2112-441: The state of competition in the domestic energy supply markets, concluding that supply competition had delivered substantial benefits for all consumers and that the markets were competitive, though not yet mature. Between 2005 and 2007, Ofgem carried out a Supply Licence Review, resulting in simplification of supply licences, with the aim of reducing barriers to entry to the supply market, and enabling innovation. In 2006, Ofgem required

2160-446: The trading practices and competitiveness of the country's "Big Six" energy companies: Centrica , SSE plc , RWE npower , E.ON , Scottish Power and EDF Energy . The investigation, which took two years, followed a referral by Ofgem to the competition regulator. "There is near-unanimous support for a referral and the CMA investigation offers an important opportunity to clear the air. This will help rebuild consumer trust and confidence in

2208-544: Was laid by the Energy Act 2004 , with the first offshore transmission license being awarded in 2011. As of 2021, all the offshore transmission infrastructure in Great Britain has been built by wind farm developers, who are then required to sell their transmission assets to a separately licensed Offshore Transmission Owner. The divestment must take place before the Generator Commissioning Clause date, on which

2256-404: Was not possible for the 1.7 million customers of the largest company to enter administration , Bulb Energy , which instead entered a special administration regime underwritten by the UK government. A July 2022 report "Energy pricing and the future of the energy market" by Parliament's Business, Energy and Industrial Strategy Committee found that Ofgem had been incompetent in its supervision of

2304-406: Was split (demerged) into Centrica and BG plc , in order to separate gas supply from its production and distribution. Between 1996 and 1999, domestic energy consumers were gradually able to choose their supplier. Finally, in May 1998 the domestic gas market was fully opened to competition, followed by the domestic electricity market in May 1999. Before there was competition in domestic markets,

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