Future of retail market regulation

The retail energy market is undergoing far-reaching and exciting changes. Our regulation needs to stay ahead of market developments and in a way that does not distort them. It must enable diverse approaches so we can foster more competition and innovation and support new market participants, while offering effective protection to all consumers.

To this end, we’ve committed over time to rely more on general principles rather than detailed prescriptive rules about how companies should run their businesses.

Why a principles-based approach to regulation?

Simply put, we consider it can deliver better outcomes for consumers. It puts greater responsibility on suppliers to understand and deliver what is right and fair for their customers and enables comprehensive consumer protection. It will also future-proof our regulation and provide room for innovation. We still see a continued role for prescriptive rules where appropriate.

We are now exploring how best to implement a principles-based approach.

Our scope

For now, we are focused on the domestic gas and electricity supply markets, where the scope for change is particularly significant and there is a high volume of prescriptive rules.

Below you can view all our publications and outputs relating to our proposed approach, including how we are engaging with stakeholders to inform our work in this area.

Contacting us

We are continuing to engage actively with stakeholders and are always happy to hold bilateral discussions over the phone or in person. If you have any questions or further views relating to this work, please get in touch at FutureRetailRegulation@ofgem.gov.uk.  

   

Publications and updates

  • Published: 30th Jan 2017
  • Closing: 13th Mar 2017
  • Consultations & responses
  • 1 Associated documents
This policy consultation proposes amendments to the domestic and non-domestic Standards of Conduct that aim to ensure suppliers are treating customers fairly in an evolving retail energy market.

  • Published: 30th Jan 2017
  • Closing: 6th Mar 2017
  • Consultations & responses
  • 3 Associated documents
This statutory consultation sets out our final proposals to remove the majority of prescription from the sales and marketing licence condition and rely more on principles.

  • Published: 30th Jan 2017
  • Reports & plans
  • 1 Associated documents
This report sets out the findings from our 2016 Challenge Panel about how well suppliers are helping consumers to make informed choices.

  • Published: 16th Nov 2016
  • Agendas, minutes and presentations
  • 2 Associated documents
This note summarises the main views and themes that emerged at the senior stakeholder event we held on 6 October 2016 on delivering the shift towards a greater reliance on principles in regulating the retail energy market.

  • Published: 9th Sep 2016
  • Open letters & correspondence
  • 1 Associated documents
This letter sets out the aims of our second Challenge Panel and requests information from suppliers for this event. It details our approach to holding the event including our selection process for mandating responses from certain suppliers.

  • Published: 18th Aug 2016
  • Open letters & correspondence
  • 1 Associated documents
This paper sets out our latest thinking on how we might amend the existing Standards of Conduct so they remain fit-for-purpose. It also explains our intention to introduce a broad principle that sets out our expectations around suppliers’ treatment of...

  • Published: 9th Jun 2016
  • Consultations & responses
  • 1 Associated documents
This document summarises some of the key themes raised by stakeholders in response to our December 2015 consultation on the future of retail market regulation.

  • Published: 2nd Jun 2016
  • Open letters & correspondence
  • 1 Associated documents
This letter outlines our plan for relying more on principles in the way we regulate the domestic supply market. It also sets out how we intend to adapt the way we operate and put our rules into practice.

  • Published: 21st Apr 2016
  • Agendas, minutes and presentations
  • 1 Associated documents
These slides, on the future of retail market regulation, were presented at Cornwall Energy’s Small Supplier Forum for domestic suppliers on 13 April 2016.

  • Published: 24th Mar 2016
  • Agendas, minutes and presentations
  • 2 Associated documents
This note summarises the main views that emerged at the consumer groups workshop we held on 3 March 2016 to explore some of the issues raised in our Future of Retail Market Regulation consultation.

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