Source · Select Committees · Business and Trade Committee
Recommendation 57
57
Deferred
Paragraph: 227
Mandate government prioritisation of retail market reform and an updated Energy Retail Market Strategy.
Recommendation
The current regulatory and market structures of the retail sector will not deliver a consumer experience that can adequately support the transition to decarbonised power system. We recommend that the Government prioritises the reform of the retail market and that its updated Energy Retail Market Strategy: a) clearly sets out the role that suppliers will be expected to play in the transition to a decarbonised power system as well as interim milestones to achieve this; b) enables suppliers to innovate and build sophisticated relationships with customers through the provision of a broader set of energy services; 110 Decarbonisation of the power sector c) allows suppliers to be fairly rewarded for providing services that entice customers to shift and reduce demand, in a way that reflects the additional risks that suppliers will be taking on; and d) removes barriers that prevent vulnerable customers from accessing the benefits that the transition will offer.
Government Response Summary
The government recognizes the retail market's importance and will pursue reforms by launching a Call for Evidence in summer 2023, followed by a consultation later in 2023, to determine how the framework should evolve.
Paragraph Reference:
227
Government Response
Deferred
HM Government
Deferred
143. The energy retail market is the main interface between consumers and the energy system, and government recognises that it is a critical enabler of consumer choice and participation as the energy system decarbonises. As described in the March 2023 Energy Security Plan, the Government is pursuing targeted reforms to deliver an energy retail market that works better for consumers, is more resilient and investable, and supports the wider transformation of our energy system. As part of this, and reflecting the fact that specific features of the current retail regulatory framework may act as barriers to innovation, in summer 2023, the Government will launch a Call for Evidence on how the framework needs to evolve to support new ways of offering energy supply, before a consultation on options later in 2023.