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Response to Ofgem’s consultation on future retail regulation

18 April 2016

Citizens Advice response about the future of the retail market regulation, March 2016 [ 0.73 mb]

It is important that, in reviewing the existing rulebook, Ofgem takes a balanced decision as to whether principles, prescription or a combination is most appropriate for each specific area of the supply licence. In particular, we would warn against a new approach that sees principles as the default option. Whilst Ofgem is right to strip out unnecessary prescription in the current rules, it should remain open to the possibility that new prescriptive rules may be needed in some areas.

We suggest several areas that should retain elements of prescription. The majority of them already meet Ofgem’s proposed criteria for retaining prescriptive rules and we’ve provided further detail about why we believe continued prescription is required. Where required, each of these areas could work well with broad or narrow principles to ensure there are no gaps in consumer protection.