Microbusiness Strategic Review: Statutory Consultation to modify the SLCs of all gas and electricity supply licences

  • Upcoming
  • Open
  • Closed (awaiting decision)
  • Closed (with decision)

Publication date

Closed date

Industry sector

Supply and Retail Market

Licence type

  • Gas Supplier Licence
  • Electricity Supply Licence


This statutory consultation confirms our proposals to address a number of key harms faced by microbusinesses in the retail energy market as identified by our Microbusiness Strategic Review.

In July 2020, we consulted on our initial package of proposed policy measures designed to improve microbusinesses experience of the market. Having reviewed consultation responses, held a number of virtual stakeholder workshops, gathered additional industry data and accounted for developments in government policy, we have refined our plans and are now consulting on a finalised package of proposals as follows:

  • Provision of principal contractual terms: Strengthening existing rules around the provision of principal contractual terms to ensure consumers receive this key information both pre and post-contract agreement in all cases
  • Brokerage cost transparency: Clarifying and strengthening existing supply licence obligations to provide information about brokerage costs on contractual documentation
  • Broker dispute resolution: Introducing a requirement for suppliers to only work with brokers signed up to a qualifying alternative dispute resolution scheme
  • Cooling-off period: Introducing a 14 day cooling-off period for microbusiness contracts
  • Banning notification requirements: Banning suppliers from requiring microbusinesses to provide notice of their intent to switch
  • Information and Awareness: Working collaboratively with Citizens Advice to create new and updated information so that microbusinesses can access up-to-date guidance and advice alongside communications to help further boost awareness of how the market operates and their rights as consumers.

We have published draft notices and a revised Impact Assessment (IA) alongside this statutory consultation. The revised IA sets out our updated thinking on the likely impact of our proposals.

We want to hear from anyone interested in this consultation. Please send your response to CDconsultations@ofgem.gov.uk, by close on 09 July 2021

Following the closure of this statutory consultation, we expect to issue a final decision in summer 2021. We then anticipate policy measures taking effect from autumn 2021 onwards.

Respond name

Jonathan Blagrove