Plan to bash down barriers for small energy suppliers

A number of commitments that aim to reduce barriers for independent energy suppliers wishing to enter the market have been published by the Government and Ofgem. Through the Government’s ‘Challenger […]

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By Priyanka Shrestha

A number of commitments that aim to reduce barriers for independent energy suppliers wishing to enter the market have been published by the Government and Ofgem.

Through the Government’s ‘Challenger Business’ programme, they have been working with smaller suppliers to see what more can be done to address the issues.

They have published an action plan, which lists three areas they will focus on – rules and obligations, which includes social and environmental schemes, market governance and infrastructure and DECC and Ofgem’s engagement with independent suppliers, especially around policy design.

Solutions are focused on delivering “a level playing field” on which independent energy providers are able to compete with the larger established suppliers.

The Government has also appointed a senior civil servant who will be responsible for managing relations with the independent suppliers, giving them the opportunity to discuss concerns and help shape policy development.

Yesterday, figures from Energy UK revealed more than two million people have switched to smaller suppliers since 2010.

Energy Secretary Ed Davey said: “Independent energy suppliers have already made a breakthrough in giving consumers new competitive options when compared with the Big Six.

“But we want to go further and by working with these smaller challenger firms and by making it easier for them to work with us, we can embed progress and extend the benefits to more people in Britain.”

There are currently 19 independent energy suppliers in Britain’s domestic market compared to just seven in 2010, according to DECC.