In regulating the retail energy market we have committed, over time, to rely more on enforceable principles rather than detailed rules about how suppliers should run their businesses.
Last year, we removed around 30 pages of prescriptive “Simpler Tariff Choices” rules (eg the four tariff cap) that had originated from our 2013 Retail Market Review (RMR). We also committed to overhaul the rules around suppliers’ sales and marketing activities.
Having consulted stakeholders extensively on the detail of these proposals, we are now publishing our final decision. This confirms that we are removing the majority of prescription from the sales and marketing licence condition, standard licence condition 25, and replace it with five narrow principles – three aimed at promoting tariff comparability and two requiring responsible sales and marketing practices. This decision also confirms the amendments we are making to some of the ‘Clearer Information’ tools originating from the RMR reform package.
Taken together, we believe these proposals will help ensure consumers are able to make informed choices. They will provide robust protection in a fast-changing market, promote innovation and competition and put responsibility firmly on suppliers to deliver positive consumer outcomes.