Supporting innovation in the electricity retail market
- Publication type:
- Consultation
- Publication date:
- Closing date:
- 16 September 2026
- Status:
- Open
- Topic:
- Electricity supply
We are seeking views on exempting small suppliers from the Universal Service Obligation (USO).
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
How to respond
Submit your response by 16 September 2026 by emailing marketsstrategy&delivery@ofgem.gov.uk