Source · Select Committees · Business and Trade Committee
Recommendation 38
38
Acknowledged
Paragraph: 161
The previous Energy Retail Market Strategy was primarily driven by the objective to accelerate switching...
Conclusion
The previous Energy Retail Market Strategy was primarily driven by the objective to accelerate switching rates. The collapse of energy retailers demonstrated the flaws of this approach. The revised retail strategy will need to develop a market that differentiates not just on price, but on the services offered by suppliers. It needs to create incentives for customers to make the investments needed to decarbonise their homes and reward suppliers for providing enticements to reduce demand. It will need to provide protection for, and reduce the barriers to, customers who are at risk of missing out on the benefits of this market.
Government Response Summary
Ofgem is working with the Department to ensure the development of a clear and coordinated roadmap for the future energy retail market and the Department is expected to publish an update to their Energy Retail Market Strategy later this year.
Paragraph Reference:
161
Government Response
Acknowledged
HM Government
Acknowledged
Ofgem is working with the Department to ensure the development of a clear and coordinated roadmap for the future energy retail market to support the achievement of an effective transition to net zero in line with the targets set by Government. Ofgem’s vision for the energy retail market includes: • Delivering fair prices for consumers, with opportunities for all consumers to achieve savings through flexible energy use • Providing quality and standards of service that meet consumers’ needs and which protect them, in particular the most vulnerable, from harm • Supporting a low-cost transition to net zero, including by enabling the provision of innovative and green energy, and • Building resilience to market volatility and price shocks as well as encouraging long-term investment in the sector. The Department is expected to publish an update to their Energy Retail Market Strategy later this year, including further information about timescales for finalisation and implementation.