Supply licensee governance arrangements guidance

Details of outcome

The guidance focused on board effectiveness, transparency, included example scenarios and would be introduced under the Operational Capability Principle and Milestone Assessment guidance. 

Following stakeholder feedback, we have decided to proceed with the guidance. We have taken a proportional approach offering flexibility, recognising that supply licensees of varying sizes and maturity have differing governance models and a one size fits all approach is not appropriate.  

This guidance is designed to support supply licensees in reviewing and strengthening governance arrangements in a way that enables responsible growth and delivers better outcomes for consumers.

• Milestone Assessment guidance
• Operational Capability and Financial Responsibility Principles guidance

Read the full outcome

Original consultation

We are consulting on new guidance to strengthen supply licensee governance arrangements. Following the guidance will help to build greater financial resilience in the sector. 

We want to ensure energy supply licensees have effective governing bodies through mechanisms such as:

• independent oversight
• conflict of interest management
• providing transparency of their governance arrangements

These proposals aim to support better decision making across the market. Your views will help us determine the best way to proceed.