Timeyin Akerele

But we also make sure that the suppliers adhere to a set of rules and principles in order to deliver good service to customers and treat customers fairly.

And then on the network side, we run a regime that approves the investment they need to make and tries to deliver that at least cost.

So the regulatory regime we run enables them to invest billions of pounds, but at relatively low cost of capital.

So it keeps the cost down for consumers.

There are other bits of infrastructure that we're also now taking responsibility for regulating in a similar way.

So, for example, around hydrogen, running a sort of similar cost regulation regime for nuclear going forward, the size well plant, things like that.

And then above all of that, we try to just make sure that the system works efficiently.

And in that area, for example, we're promoting the development of more flexibility in the electricity sector.

Because if people can use more energy when it's cheaper, for example, when the wind is blowing, sun is shining, then the cost of the whole system can come down.

So that's the overall goal and the main mission for Ofgem.

The main challenge for us over the last few years, I think it's fair to say, was the energy crisis last time.

So when the Ukraine invasion happened, the price of gas went dramatically higher for the whole of Europe, including Britain.

And that caused a lot of problems in the energy sector, obviously huge problems for households and businesses who were having to pay higher bills.

But it also revealed some instability and vulnerabilities in the retail market.

So a lot of the

Retailers, we call them energy suppliers, went bust during that time.

So there were a lot of lessons for Ofgem in how to handle that.

And we have invested really strongly now in a new regulatory process by which suppliers have to demonstrate their resilience so they can take financial shocks and not necessarily go out of business.

That doesn't mean an energy supplier won't fail or won't go out of business.

If they do a bad service or they want to exit the market, then we still need that fluidity, the ability to enter and exit the market.