Ofgem is to be streamlined into three divisions separated according to their different regulatory functions.
The regulator said the reorganisation ahead of its move to a new government hub building at Canary Wharf in London will enable it to better focus on protecting consumers.
The consumers and markets division will look after the interests of consumers in the energy market. Its remit will include both wholesale and retail markets as well as enforcement.
The system operation and networks division will focus on developing the next round of the RIIO price controls due to start in 2021 and ensuring maximum benefits for consumers from the transformation of the energy system.
The corporate and scheme services division will provide business support services to the rest of Ofgem and run environmental schemes for the government.
The reorganisation is set to take place in April. Ofgem will publish more details in March.
The regulator also announced that senior partner for energy systems, Andrew Wright, and managing director for E-Serve, Chris Poulton, have both decided to leave the organisation over the next few months.
Ofgem chief executive Dermot Nolan, said: “I would like to thank Andrew Wright and Chris Poulton for their enormous contribution to Ofgem. I have appreciated their support during my time at Ofgem and wish them well in their future careers.”
Rachel Fletcher recently left her post as senior partner for consumers and competition to head up fellow regulator Ofwat.