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. The principles-based domestic and non-domestic Standards of Conduct licence conditions were introduced in 2013 and require that suppliers treat customers fairly.
We want to ensure the domestic and non-domestic Standards of Conduct can achieve their policy intent in an evolving market. This policy consultation proposes amendments to the tests and thresholds within both of these licence conditions so they would have a sharper focus on consumer outcomes. For the domestic Standards of Conduct only, we are proposing to add broad principles that require suppliers to enable consumers to make informed choices and to have special regard for consumers in vulnerable situations.
This consultation also proposes changes to Ofgem’s information gathering powers. These changes would allow us to monitor the market more effectively as we rely more on principles.