Making markets work for consumers: The regulation of gas and electricity sales and marketing: proposals for the amendment of standard licence condition 48

Publication date
19th December 2003
Policy areas

In the longer term Ofgem considers that sector specific regulation of energy sales and marketing may become unnecessary.

However, it would be inappropriate to step back fully from formal regulation at this time. For the time being, Ofgem has concluded that there is scope to change the licence condition to reflect better the needs of both suppliers and consumers.

This document includes, for further consultation, a set of more specific proposals for a revised licence condition. These proposals include: a clearer definition of what activity is regulated by the licence condition; a set of core requirements applicable to all sales and marketing channels; prohibition of certain specific activities; improvement of information provided to consumers; a consumer right to a 14 day cancellation period; and an alternative to existing reporting requirements.

In addition the consultation document seeks further views on the impact of a requirement to verify that consumers wish to proceed with a transfer. Standard licence condition 48 is due to expire on 31 March 2004.

Our preferred option is modification of the licence condition as described above. Alternatively the Authority is able to extend the licence condition for a further two years if, after consultation with suppliers and energywatch, it considers that the development of competition in gas and electricity supply is such as to require that extension. This document will serve as a consultation to extend the licence condition, in its current format, if proposals for amendment are not agreed. Views are invited.

Response documents