The changes to the rules have come into effect this week and will mean that Ofgem can give early warning of a company's financial distress and lessen the impact of any financial trouble on consumers.
Ian Marlee from Ofgem, said: "Given the significant investment of around £30bn that will take place over the next eight years, it is vital that consumers' money is protected.
"That is why Ofgem is strengthening the ring fence rules and introducing a requirement for two sufficiently independent non-executive directors on network licensee Boards."
The watchdog says that the requirement to have two non-executive board directors will help mitigate the risk that executive directors with other roles could become conflicted at times of crisis.
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