Our relationship with the UK Government

The OGA has day-to-day operational independence from the Department for Business, Energy and Industrial Strategy (BEIS) and undertakes its activities in accordance with all applicable laws and regulations and the MER UK Strategy.

A Framework Document sets out the relationship between the OGA and Government. This relationship is summarised below:

The Secretary of State for Business, Energy and Industrial Strategy:

  • Sets the overall policy and legislative framework within which the OGA operates.
  • Is ultimately responsible to Parliament for the OGA.
  • Must agree to any extension of the OGA’s remit; any material deviation from the OGA’s Corporate Plan; any changes to the MER UK Strategy; and any decision to impose financial sanctions in excess of £1m.

The BEIS Permanent Secretary, as Principal Accounting Officer:

  • Is accountable to Parliament for any grant funding of the OGA and advises the Minister in charge on the appropriate objectives, budget and strategic objectives for the OGA.
  • Is responsible for ensuring that BEIS monitors the OGA’s activities and delivers value for money. Designates the OGA Chief Executive as Accounting Officer.

BEIS:

• Has established a shareholder team to support the Secretary of State and the Principal Accounting Officer to fulfil their responsibilities with regard to the OGA.
• Will consult and collaborate closely with the OGA before transferring any additional functions to the OGA.

The OGA Board of Directors:

  • Is responsible for providing clear strategic direction for the OGA.
  • Is accountable to the Secretary of State for Business, Energy and Industrial Strategy.
  • Must act in accordance with Company Law and the Code of Conduct for Board Members of Public Bodies.
  • Provides assurance on the effectiveness of internal controls and risk management.

The OGA Chief Executive:

  • Is accountable to the OGA Board of Directors for delivering the OGA’s objectives, plans and strategies.
  • As Accounting Officer, is accountable to the Principal Accounting Officer of the Department for Business, Energy and Industrial Strategy and to Parliament for the OGA delivering value for money for the Exchequer, in accordance with Managing Public Money guidance.

Reporting arrangements

  • A BEIS Director represents the Secretary of State for Business, Energy and Industrial Strategy, the OGA’s sole shareholder, on the OGA Board as a full Board member.
  • The OGA provides monthly updates on its performance to the BEIS shareholder in papers provided to the OGA Board.
  • Delegated authorities are formally agreed and recorded annually.
  • The OGA will produce an Annual Report and Accounts to be approved by the OGA Board of Directors and the Secretary of State for Business, Energy and Industrial Strategy.

Relationships with other organisations

The OGA will work collaboratively with Government and industry to deliver its principal objective. The OGA will publish any Memoranda of Understanding (MOU) or Service Level Agreement (SLA) agreed with government or other public bodies. 

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