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: 19th Jul 2017
  • Open letters & correspondence
  • 1 Associated documents
We intend to make the supply licences and associated guidance more user-friendly, and recently asked stakeholders how they think we should do this. This letter explains what they told us, and the changes we plan to make.

  • Published: 4th Jul 2017
  • Decisions
  • 0 Associated documents
We have published a statutory consultation on our proposed changes to the domestic and non-domestic Standards of Conduct.

  • Published: 3rd Jul 2017
  • Open letters & correspondence
  • 1 Associated documents
This paper sets out our latest thinking on how we might amend the Personal Projection rules so that they remain fit-for-purpose in a rapidly changing market.

  • Published: 22nd Jun 2017
  • Closing: 24th Jul 2017
  • Consultations & responses
  • 3 Associated documents
This statutory consultation sets out our final proposals for amending the domestic and non-domestic Standards of Conduct.

  • Published: 27th Apr 2017
  • Decisions
  • 3 Associated documents
Following consultation, we have decided to modify the electricity and gas supply licences to overhaul the sales and marketing licence condition.

  • Published: 6th Apr 2017
  • Agendas, minutes and presentations
  • 1 Associated documents
On 16 September 2016, Ofgem held a workshop for consumer groups and charities to discuss our proposals for implementing a number of the Competition and Market Authority’s (CMA) remedies, following its two-year investigation into GB energy markets. This...

  • Published: 3rd Mar 2017
  • Agendas, minutes and presentations
  • 2 Associated documents
On 28 February 2017, we held a stakeholder workshop that explored some of the questions and proposals in our recent policy consultation on broad principles and our statutory consultation on new principles for informed choices.

  • Published: 30th Jan 2017
  • Closed: 6th Mar 2017
  • Consultations & responses
  • 15 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
  • Closed: 13th Mar 2017
  • Consultations & responses
  • 28 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
  • 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.

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