Supporting innovation in the electricity retail market

Details of outcome

We have decided to move to statutory consultation on our proposal.

The statutory consultation sets out our proposed licence modifications and provides stakeholders with a further opportunity to comment before a final decision is made.

Read the full outcome

• Exempting smaller suppliers from the Universal Service Obligation: statutory consultation

Original consultation

Consultation description 

This consultation seeks views on a proposal to exempt electricity suppliers with fewer than 50,000 domestic customers from the Universal Service Obligation (USO).  

Under the proposal, these suppliers would not be required to offer supply to all domestic consumers until they reach the threshold, at which point the USO would apply.  

We consider this a proportionate, targeted measure that could reduce barriers to entry, support innovation and encourage new business models, while maintaining important consumer protections. We are seeking stakeholder views on the potential benefits, risks and safeguards, and whether a 50,000-customer threshold is appropriate. 

Who should respond 

We would like views from people with an interest in reducing barriers to entry in the retail market. We particularly welcome responses from: 

• energy suppliers 
• other interested industry parties 
• consumer groups 
• charities