Enforcement matters
Ofgem has powers to order energy suppliers and gas transporters to do anything it considers necessary to ensure they comply with certain provisions of the Acts or any conditions in their licences. The Energy Act 2023 makes provision for the enforcement of conditions of licences and of other requirements imposed on licence holders.
The matters covered by these powers are called ‘enforcement matters’ and include:1Condition 2 SLC •giving and continuing to supply electricity;
•connecting premises to a supply of gas;
•paying interest on security deposits;
•keeping meters in proper working order;
•producing codes of practice or other arrangements to deal with customers in default;
•protecting consumers when energy providers cease trading.
The list of enforcement matters seems more limited than it really is. For instance, disputes about responsibility for bills are not specifically mentioned, but may be covered indirectly because one remedy for a supplier in a dispute is to disconnect you and disconnection may be an enforcement matter. Ofgem can intervene in a dispute if it is likely to end up being an enforcement matter, but it cannot intervene in individual billing disputes.
The conditions in suppliers’ and transporters’ licences are not enforceable by individual consumers because they are obligations arising between the respective supplier and Ofgem. Many disputes arise directly under the relevant Acts, but those that only involve breaches of licence conditions have to be referred to Ofgem. If necessary, Ofgem’s exercise of its powers can be judicially reviewed.2See R v Director General of Gas Supply ex parte Smith CO/1398/88 31 July 1989, unreported (QBD) citing Lloyd and Others v McMahon [1987] AC 625; [1987] 1 All 1118 Lord Bridge at pp702H to 703A In certain circumstances, the suppliers themselves may also be judicially reviewed (see here).