The government is consulting on its vision for the future energy retail market, the key challenges that need to be addressed and the outcomes the market should deliver.
It follows a joint review launched by BEIS and Ofgem last November to investigate what policy, legal and regulatory changes might be needed to ensure the energy retail market is fit for the future.
They are considering ways to make regulation “more flexible” so both BEIS and Ofgem can adapt to change more quickly.
Their vision for a future energy retail market is one where innovation brings greater choice to consumers, allowing them to take advantage of the increased flexibility and lower costs of a smart, low carbon energy system.
To deliver that, the review is targeting five key outcomes by addressing the challenges associated with them: Wide choice of energy markets, consistent consumer protection, minimal market distortions, competitive prices for all and ensuring consumers in vulnerable situations receive the services they need.
The consultation document states: “The energy system is undergoing a fundamental transformation as the processes of decarbonisation, digitalisation and decentralisation accelerate. While we cannot know exactly how the future will evolve, the pace of change – driven by new technologies – is likely to increase.
“Over the course of the next decade, we expect markets to combine supply and demand together in new ways, enabling competitive pressures and differentiation through more of the energy value chain. There will likely be greater diversity in the types of companies operating in the sector. There will of course, continue to be those who do not make active decisions about energy, so there will be an ongoing need for protections to ensure these consumers are not left behind.”
The consultation is open until 16th September 2019.