Raising the bar

Raising the bar  1.67 MB

The retail energy market is facing the most challenging times since liberalisation in the 1990s.

  • Suppliers serving 4 million households have failed since August 2021, adding over £2.6bn to our energy bills

  • Regulatory failures by Ofgem allowed risky business models into the market, with many companies offering poor service

  • Energy prices are at a generational high, heaping financial pain onto millions of families

This has shattered consumer confidence in the market at the worst possible time. Looking ahead, we need more participation in the market and smarter energy products and services that deliver more consumer value and help us decarbonise.

Ofgem needs to urgently restore consumer trust. In the short term it must ensure compliance with existing rules, but an upgrade of retail regulation based on the FCA’s new Consumer Duty could deliver higher service standards and protections for the decade ahead. This would put more onus on suppliers to achieve good consumer outcomes, make it easier for the regulator to hold them to account, and fill key gaps in consumer protection as more complex energy products and services emerge.