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: 9th Jun 2016
  • Consultations and 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 and 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.

  • Published: 17th Feb 2016
  • Agendas, minutes and presentations
  • 2 Associated documents
On 3 February 2016 we held a stakeholder workshop that explored some of the questions and proposals in our future of retail market regulation consultation document. The main views that emerged from these discussions are captured in this summary note.

  • Published: 9th Feb 2016
  • Agendas, minutes and presentations
  • 4 Associated documents
From 2.30pm until 5pm today, join our CEO and guest speakers from Innovate UK and the Financial Conduct Authority in a panel discussion on innovation in a transforming energy system.

  • Published: 18th Dec 2015
  • Closed: 11th Mar 2016
  • Consultations and responses
  • 31 Associated documents
Ofgem’s Corporate Strategy commits us to explore how best to rely more on principles in the way we regulate the retail energy market. We welcome views on our proposals.

  • Published: 21st Jul 2015
  • Agendas, minutes and presentations
  • 2 Associated documents
These are the slides and a summary of the breakout discussions from the stakeholder workshop held on 7 July to discuss future retail regulation.

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