Ofgem’s Annual Report and Accounts 2013-14

Publication date
26th June 2014
Information type
Policy area

Our annual report and accounts spans work from April 2013 to March 2014. It contains:

  • a strategic report that looks at how we’ve made the market better for energy consumers
  • a directors’ report that explains how we’re structured and governed
  • a remuneration report, detailing pay and benefits for our most senior staff
  • our resource accounts and trust statement, exploring our financial performance.

You can also download a summary supplement that shows some of our biggest successes from the past year.

Here’s some more detail on what’s in the main report.

Value for money

The reforms from our Retail Market Review  are the biggest changes since privatisation. They’ll make energy simpler, clearer and fairer. It’s now easier for every household to find the right deal for them.

The next step was our proposal to refer the energy market to the Competition and Markets Authority – a proposal that has since become a full decision. The CMA’s investigation will establish whether there are any barriers to competition, and, if there are, make reforms.

There’s more inside – including how we’ve helped vulnerable customers and how we’ve penalised bad supplier behaviour.

Security of supply

It’s vital to ensure that Britain has enough electricity and gas in the future. To help monitor this, in June 2013 we released our second Electricity Capacity Assessment – a report to the secretary of state designed to assess the risk to the security of Britain’s electricity supply over the following six winters.

On top of this, we’ve approved new services that will help National Grid balance the electricity system in the middle of this decade – when we expect supply to be at its tightest.

Sustainability

We want to make sure innovation helps consumers. That’s why we set up the Smarter Energy Markets Programme – and why in February we published our vision for the future of the retail market.

This year we were also involved in the next steps towards getting a smart meter in every home by 2020. This will help reduce bills and give people better information on their electricity use. We also ran multimillion-pound competitions to support innovation, and brought people together to discuss how communities can work together to get cheaper, greener energy.

Administering government programmes

Thanks to efficiency savings and enhanced productivity, our E-Serve division ran schemes worth £5 billion at a cost of less than 1% of that overall value. This includes programmes like the Renewables Obligation, which makes suppliers prove that they’ve bought a proportion of their electricity from renewable sources, and the Feed-in Tariff, which creates incentives for small-scale low-carbon generation.

As well as running existing environmental programmes, we prepared for the start of the Domestic Renewable Heat Incentive, which launched in spring.