Ofgem is committed to relying more on enforceable principles and less on detailed, prescriptive rules in the way we regulate the retail energy market. We are also committed to more risk-based engagement with suppliers to help ensure good consumer outcomes are being delivered.
We held our first Challenge Panel in October 2014 to help us understand the progress made by suppliers in treating consumers fairly.
We recently proposed new principles that focus on tariff comparability and sales and marketing activities. The aim of these principles is to help consumers to make informed choices - a crucial aspect of the consumer journey. It is in the context of these proposed principles that we are holding our second Challenge Panel.
Our second Challenge Panel aims to explore how suppliers are:
- Embedding the Standards of Conduct and the customer objective of treating domestic customers fairly in their current approach to sales and marketing activities; and
- Considering how our proposals to ensure that customers are able to make informed tariff choices may shape their future products, policies and processes.
This letter also outlines our wider approach to holding our next Challenge Panel including the information requested from suppliers; the selection process used; and our rationale for mandating responses from certain suppliers.