40-640: The National Infrastructure Commission is the executive agency responsible for providing expert advice to the UK Government on infrastructure challenges facing the UK . Inaugurated in 2015, and established as an executive agency of HM Treasury in January 2017, one of its main tasks is to undertake a national infrastructure assessment during each Parliament. It also undertakes studies in specific areas of infrastructure. The Commission makes recommendations to
80-399: 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
120-871: A commissioner in March 2020, and Fisk stepped down in April 2022. In May 2024, ahead of the 2024 United Kingdom general election , the Labour Party announced plans to merge the Commission with the Infrastructure and Projects Authority in order to speed up the delivery of major infrastructure projects in the UK. The new body would be called the National Infrastructure and Service Transformation Authority (NISTA). In October 2024, Armitt's chairmanship
160-1043: A new framework to help support change across infrastructure sectors; it called for transparent standards of appropriate service levels, stress testing for major incidents and clearer direction for utilities providers to invest in long-term resilience. This NIC report set out options for a programme of rail investments in the Midlands and the North, using five packages and three different illustrative budget options. Executive agency King Charles III [REDACTED] William, Prince of Wales [REDACTED] Charles III ( King-in-Council ) [REDACTED] Starmer ministry ( L ) Keir Starmer ( L ) Angela Rayner ( L ) ( King-in-Parliament ) [REDACTED] Charles III [REDACTED] [REDACTED] [REDACTED] The Lord Reed The Lord Hodge Andrew Bailey Monetary Policy Committee An executive agency
200-716: Is a part of a government department that is treated as managerially and budgetarily separate, to carry out some part of the executive functions of the United Kingdom government , Scottish Government , Welsh Government or Northern Ireland Executive . Executive agencies are "machinery of government" devices distinct both from non-ministerial government departments and non-departmental public bodies (or " quangos "), each of which enjoy legal and constitutional separation from ministerial control. The model has been applied in several other countries. Agencies include well-known organisations such as His Majesty's Prison Service and
240-514: 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
280-408: Is to protect the interests of consumers, where possible by promoting competition. The Authority‘s main objective 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
320-629: The Driver and Vehicle Licensing Agency . The annual budget for each agency, allocated by HM Treasury , ranges from a few million pounds for the smallest agencies to £700m for the Court Service . Virtually all government departments have at least one agency. The initial success or otherwise of executive agencies was examined in the Sir Angus Fraser's Fraser Report of 1991. Its main goal was to identify what good practices had emerged from
360-897: The Electricity Act 1989 , the Utilities Act 2000 , the Competition Act 1998 , 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
400-679: The Gas and Electricity Markets Authority ( GEMA, the Ofgem Board ), 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 ,
440-487: 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
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#1732772326002480-508: The Commission was established as an executive agency of HM Treasury . In April 2017, Lord Adonis and Sir John Armitt were confirmed as the first permanent chair and deputy chair respectively, and four new commissioners (Dame Kate Barker , David Fisk, Andy Green and Julia Prescot ) were appointed. Lord Adonis resigned in December 2017 citing concerns over Brexit and was replaced by former deputy chair, Sir John Armitt. Barker stepped down as
520-535: The Government and then hold the Government to account on implementation. The Assessment looks at the UK’s future economic infrastructure needs up to 2050 and makes recommendations for how to deliver new transport, low carbon energy and digital networks, how to recycle more and waste less, and how future infrastructure should be paid for. It aims to ensure the UK is prepared for the technological advances that will change how
560-495: The London area and strongly advocated the construction of Crossrail 2 as its main proposal. This report explored options for improving connectivity across the North of England. Options include High Speed 3 , upgrades to the motorway network, investment in conventional railways and a new Trans-pennine Tunnel. Connected Future explored what the UK needed to do to become a world leader in 5G deployment and take early advantage of
600-445: The UK would be unlikely to meet its zero emissions target by 2050. The study considered what action government should take to ensure that the UK’s infrastructure can cope with future changes, disruptions, shocks and accidents. It looked at how resilience can be assessed and improved, including through better design and application of new technologies. The report, Anticipate, React, Recover: Resilient infrastructure systems , prescribed
640-479: The United Kingdom. By 1997, 76% of civil servants were employed by an agency. The new Labour government in its first such report – the 1998 Next Steps Report – endorsed the model introduced by its predecessor. A later review (in 2002, linked below) made two central conclusions (their emphasis): " The agency model has been a success . Since 1988 agencies have transformed the landscape of government and
680-727: The United States, the Clinton administration imported the model under the name "performance-based organizations." In Canada, executive agencies were adopted on a limited basis under the name special operating agencies . One example is the Translation Bureau under Public Services and Procurement Canada . Executive agencies were also established in Australia, Jamaica, Japan and Tanzania. Ofgem The Office of Gas and Electricity Markets ( Ofgem ), supporting
720-404: 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
760-646: The country operates. The first National Infrastructure Assessment was published in July 2018, and the second was published in October 2023. The commission has published reports on infrastructure in the UK as well as recommendations for its improvement. The first report, published in March 2016, looked into the UK energy market, exploring how supply and demand can better be balanced as well as making recommendations for future infrastructure programmes. The second report explored options for improving transport within and around
800-591: 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
840-546: The environment. In October 2018, the government asked the Commission to conduct a new study into regulation of the UK's energy, telecoms and water industries, to ensure the necessary levels of investment and innovation. The study report, Strategic investment and public confidence, was published in October 2019, and said the UK's regulatory system must "adapt to meet the demands of the future" by providing regulators such as Ofgem with new powers to ensure utility investments in sustainable infrastructure. Without such powers, it said
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#1732772326002880-609: 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
920-737: The gas and electricity supply industries was enacted by the Gas Act 1986 and the Electricity Act 1989 . Section 1 of 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
960-678: The government asked the commission to conduct a new study on how technology can improve infrastructure productivity. The study was published in December 2017. Published ahead of the National Infrastructure Assessment, this study set out the Commission’s advice on how to address England’s water supply challenges and deliver the appropriate level of resilience for the long term. This study identified actions to enable UK’s freight networks to meet growing demands for fast deliveries and reduce their impact on congestion and
1000-499: The government, and monitors the government's progress on infrastructure. The Commission is the body responsible for providing independent analysis and advice to the Government to ensure the UK meets its long-term infrastructure needs. Its role is to support sustainable economic growth across all regions of the UK, improve competitiveness, and improve quality of life. It was established in October 2015. Chancellor George Osborne appointed Lord Adonis as interim chairman. In January 2017
1040-548: 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
1080-541: 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
1120-407: 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
1160-407: The new model and spread them to other agencies and departments. The report also recommended further powers be devolved from ministers to chief executives. A series of reports and white papers examining governmental delivery were published throughout the 1990s, under both Conservative and Labour governments. During these the agency model became the standard model for delivering public services in
1200-431: The potential applications of 5G services. The commission found that Britain was 54th in the world for 4G and that the UK government and the communications regulator, Ofcom , needed to ensure that essential outdoor mobile services, such as basic, text and data use, were available all across the UK. In anticipation of 5G, the UK had to improve mobile connectivity on railways, roads and in towns and cities. In November 2016,
1240-469: 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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1280-501: 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
1320-421: The responsive and effectiveness of services delivered by Government." Some agencies have, however, become disconnected from their departments ... The gulf between policy and delivery is considered by most to have widened." The latter point is usually made more forcefully by critics of the government, describing agencies as "unaccountable quangos ". Several other countries have an executive agency model. In
1360-642: 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 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
1400-441: 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
1440-446: 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
1480-612: Was appointed Chief Executive of Ofgem from February 2020. The liberalisation and privatisation of the energy markets in 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
1520-458: Was extended by six months to oversee development of a 10-year strategy and NISTA's creation. The commissioners are supported by about 40 people who work in the secretariat, made up of civil servants, including economists and policy generalists, as well as secondees from industry. One of the NIC's main tasks is to undertake a national infrastructure assessment each parliament, making recommendations to
1560-404: 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
1600-406: 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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