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Response to Ofgem’s consultation on switching programme regulation and governance

19 November 2018

Response to Ofgem’s  consultation on switching programme regulation and governance [ 390 kb]

We support Ofgem’s updated thinking on how the Retail Energy Code (REC) will be governed - particularly the addition of a strong Performance Assurance Board. We think this is essential to ensure the new arrangements deliver good consumer outcomes.

We also welcome the further clarity on Ofgem’s aims for a consolidated REC, that goes beyond the changes required to deliver the switching programme. We think this will simplify the regulatory landscape, and bring important areas that impact consumers under the improved governance of the REC. We therefore strongly support the proposal for a second, parallel Significant Code Review (SCR) to run alongside the existing switching programme SCR.

As the statutory consumer advocate, we attend a number of codes, and in some of
these we are also able to raise changes and vote. We welcome Ofgem’s plans for a
consumer-focused REC, with a strong role for consumer representatives and more
scope for the involvement of other affected stakeholders. We also welcome Ofgem’s
collaborative approach to developing the changes needed to establish the REC, and will engage with the detailed work in the affected codes that we attend.

During the consultation period the Secretary of State announced a joint BEIS/Ofgem
review into industry codes and code governance. We believe that the development of the REC has already identified various improvements to code governance, aspects of which could form the basis for the work of the broader review of codes. We look forward to engaging with this review and understanding how it will proceed alongside the ongoing development of the REC.