2024-102 Board Effectiveness Review

Good practice in corporate governance is for Boards to review their own effectiveness every year, and to have externally facilitated board evaluations at least every three years. This is also a government requirement for arms-length bodies. Ofgem wishes to carry out a board effectiveness review that fulfils the traditional requirements, including: a) Providing independent feedback on how well the Board carries out its duties and how this compares with best practice and relevant corporate governance guidance; and b) Providing advice to the Board on how to improve its effectiveness by reviewing the current structures, processes, behaviours, and decision-making.