The Gas and Electricity Markets Authority (our governing body) is given powers by statute to make decisions about enforcement action. However, they can delegate decisions about breaches or infringements, the use of enforcement powers, and the imposition of penalties or consumer redress payments.
The Authority’s decision-making bodies include the Enforcement Oversight Board, Settlement Committees and the Enforcement Decision Panel.
Enforcement Decision Panel
Where enforcement cases are contested, the Authority may delegate decisions to the Enforcement Decision Panel (EDP). These decisions can involve imposing a significant financial penalty on energy companies when they break regulatory rules.
The EDP was created to allow cases to be decided by dedicated specialists, with an easily visible separation between the investigation and decision-making functions. Members of the panel play a crucial role in continuing to deliver our central duty to protect consumers, facilitate competition and ensure the integrity of the wholesale energy market.
How does the EDP work?
Members of the EDP are appointed by the panel Chair to case decision panels or settlement committees, to hear and take decisions in individual cases. Once appointed to a panel or committee, the role involves delivering our Enforcement Vision by taking decisions on behalf of our governing body as to whether there has been a breach of obligation, competition laws, or REMIT regulations, and whether a penalty or redress package should be imposed and if so what level of penalty or redress.
The EDP’s decisions are independent from the investigating team and our governing body cannot change or over-rule EDP decisions.
Powers in criminal cases
The Authority has delegated power to the Chair of the EDP or another legally qualified member of the EDP, to take decisions on whether to proceed with criminal prosecutions. This took effect on 29 February 2016 and full details can be found in the Prosecution Policy Statement.
Terms of Reference and Annual Reports
We have published both the EDP's terms of reference and the terms of reference for Settlement Committees in the Committees of the Authority document on our website.
You can read details of EDP enforcement activity, and information about its members, in our EDP annual reports. These are available in the in our cross-sector reports and updates section.
The EDP has been authorised to take enforcement decisions on behalf of the Civil Aviation Authority for any Competition Act cases. This came into force on 22 April 2016. The Authority is indemnified in relation to any decisions taken by the EDP on behalf of the CAA.
Settlement committees
A Settlement Committee may be constituted for any sectoral or Competition Act case which is considered suitable for settling a case. A Settlement Committee generally consists of two members of the EDP and one Ofgem Director. They will have regard to the Authority’s penalties and redress policy statement.
Settlements usually result in consumer redress payments being made to individuals affected by a breach and/or to a suitable charitable organisation. Any redress payments made to a charity or trust are allocated by an independent third party.
For information on how settlement and contested cases are managed, see our Enforcement Guidelines.