Ofgem’s open letter on the CMA’s Voluntary Redress Scheme Guidance

Publication date
14th April 2016
Information type
Policy area

This guidance is aimed principally at businesses voluntarily seeking to provide compensation under a redress scheme for infringements of competition law. Approved voluntary redress schemes are a form of alternative dispute resolution. Where a business offers a redress scheme, those affected by the infringement are able to claim compensation through such a scheme without the need to pursue litigation in the courts.

Ofgem is able to approve and enforce certain voluntary redress schemes under the Competition Act 1998 (CA98) as amended by the Consumer Rights Act 2015.

Ofgem has decided that, with the exception of the contents relating to prioritisation criteria, it is appropriate to adopt the CMA’s redress scheme guidance. This letter explains how we will exercise our powers to approve and enforce voluntary redress schemes under CA98.