Ofgem told us that in order to undertake the functions being asked of it and to “play the role we want to play” in the sector, it would need different resources and different skills in future.22 It explained that its past approach to regulating the energy sector had largely been reactive, in that it had worked mainly with companies identified as being under stress. It told us that it was changing its regulatory approach so it would assess the financial resilience and business management of every company and then respond accordingly.23 Ofgem told us that the decision to change from a reactive model that looked at individual cases to a model similar to that in banking, where all firms are regularly monitored and assessed, was a “very big shift” that would require Ofgem to build its staff, skills and systems. Ofgem had already spent some time working with the Bank of England to identify the changes it needed to make and the skills this would require.24