Statutory consultation on potential short-term interventions to address risks to consumers from market volatility

Consultation

Publication date

Closing date

Industry sector

Supply and Retail Market

High and volatile gas and electricity prices continue to put severe strain on energy markets. We are putting in place an enhanced regulatory approach to ensure energy suppliers pursue sustainable business models, minimising risks to customers and the market. And we are seeking views on potential adjustments to the price cap methodology to enable it to better handle market volatility, while continuing to protect consumers.

This is a consultation on the risks of consumer harm associated with ongoing market
volatility and on three temporary measures that Ofgem could take in the short term in response, if we thought further action was warranted in the interests of consumers:

  1. Requiring suppliers to make all new tariffs available to existing customers
  2. Allowing suppliers to charge exit fees on certain Standard Variable Tariffs
  3. Requiring suppliers to pay a Market Stabilisation Charge when acquiring new customers.

We welcome stakeholder views on the potential scale and timing of the risks to consumers
posed by current market volatility, the case for intervention to protect consumers’ interests
and the nature of any such intervention.

Please send responses to this consultation on or before 17 January 2022
to: retailpolicyinterventions@ofgem.gov.uk or in writing to Retail Policy Interventions,
Ofgem, 10 South Colonnade, Canary Wharf, London, E14 4PU. We prefer to receive
responses by e-mail.