Ofgem's principal objective is to protect the interests of consumers, including future consumers.
Although some aspects of distribution activity are susceptible to competition (such as connections and metering), the regional distribution networks are natural monopolies. Ofgem, as the industry regulator, administers a price control regime which ensures network operators (DNOs) can, through efficient operation, earn a fair return after capital and operating costs while limiting costs passed onto customers.
Price control periods are generally five years. The current price control (referred to as DPCR5) runs from 1 April 2010 to 31 March 2015. We monitor compliance with the price control conditions which, together with other legal requirements, are set out in the license which each DNO must hold. Ofgem can take enforcement action if price control/licence requirements are breached.
You can find further information on price control costs and revenues on the pages in this part of the website. The page for DPCR5 contains information relating to the current price control period from 2010 to 2015.