Better regulation means only regulating where necessary while designing rules that support competition and protect the customer. It is now integral to all our major policy decisions.
At a time when public spending is under the microscope, Ofgem will prioritise all work within a cost control regime that pegs its expenditure growth at three percentage points below the retail price index. This will reduce our costs by more than £5 million in real terms by 2010.
Ofgem will promote competition where possible and apply regulation only when necessary. We are committed to setting out the costs and benefits, as well as the social and environmental impacts of all major decisions, through Impact Assessments.
As part of our better regulation work Ofgem develops an annual Simplification Plan to help reduce the burden of administration while ensuring consumer protection.