Ofgem is the Office of the Gas and Electricity Markets. Protecting consumers is our first priority. We do this by promoting competition, wherever appropriate, and regulating the monopoly companies which run the gas and electricity networks. The interests of gas and electricity consumers are their interests taken as a whole, including their interests in the reduction of greenhouse gases and in the security of the supply of gas and electricity to them.

Ofgem is working to transform energy networks to help deliver Britainís plans for a low carbon future. Through the regulatory framework Ofgem is seeking to help networks to become smarter, more innovative, more flexible, more responsive to customersí changing needs and more cost effective.

Ofgem supports low carbon innovation through two different schemes. The Low Carbon Networks Fund (LCN Fund) makes available up to £500 million over the five years to encourage electricity distribution network companies to test and anticipate how their networks will need to change to facilitate the transition to a low-carbon future. The new price control, RIIO (Revenue=Innovation+Incentives+Outputs) puts innovation at its core. Beginning in 2013, it is focused on outputs and includes strong efficiency incentives. A further part of the RIIO is the annual Network Innovation Competitions (NIC). In these, network companies will compete for funding for research, development and trialling of new technologies, operating and commercial arrangements.