Citizens Advice response to Ofgem’s consultation on the implementation of the load control licence
We welcome the opportunity to respond to Ofgem’s implementation consultation regarding the proposed load control licence conditions. In our response to the parallel DESNZ consultation on the conditions, we have reiterated our position that some areas of regulation would benefit from a shift to a more outcomes-based approach. We welcomed Ofgem’s recent Call for Input on their Consumer Outcomes, and in our response also considered how an outcomes-based approach could be appropriate for the wider energy sector, including flexibility services in scope of the load control licensing regime.
It is crucial that Ofgem’s implementation approach keeps pace with the potential rapid growth of and change within the flexibility services market. We understand that Ofgem, and DESNZ, are keen to balance strong consumer protection standards with fostering innovation as the market matures. It will therefore be vital that Ofgem works closely with third parties, the Energy Ombudsman and industry to ensure that where consumer issues do emerge, regulation adapts and consumers are not left behind. In our response to the DESNZ consultation, we have reiterated our position that a statutory advice service for customers of flexibility service providers is a vital part of the consumer protection framework, and would play a significant role in working alongside Ofgem to spot emerging patterns in consumer experiences. With regards to the proposals to the application processes and monitoring requirements, we have some concerns regarding the proposed streamlined process for suppliers. We are concerned this could lead to gaps in Ofgem’s 4 monitoring approach, and could result in protection gaps across different business models and types of flexibility service.