Updated: links to 2 consultations
Over the last few years we have seen unprecedented numbers of new companies enter the energy supply market. They are bringing greater choice and diversity to the market, driving innovation and competing hard with the large established suppliers, helping to keep downward pressure on energy bills.
We are continuing to work to reduce barriers to entry and growth in the retail energy market. This includes making information about proposed policy and regulatory changes more accessible for independent suppliers. This page has been developed to ensure independent suppliers can be updated on and provide input to policy initiatives at crucial points in the policy development process. It includes links to key documents and events that impact on independent suppliers and contact details for relevant policy leads.
Roles of DECC and OfGEM
The following sets out the roles of DECC and Ofgem in relation to setting and implementing energy policy.
DECC
OfGEM
sets strategic energy framework and policy
economic regulator of gas and electricity markets in Great Britain
develops legislation to deliver policy aims
protects the interests of consumers
develops legislation to set objectives and duties of the regulator
powers to take action under competition law
appoints members of the regulator
influences European energy policy for the benefit of GB consumers
decides upon licence exemptions
administers gas and electricity licences to energy businesses
manages industry codes which contain the detailed rules governing market operation
For more information on engaging with Ofgem please see their webpage for independent suppliers
Other regulatory bodies
Competition and Markets Authority (CMA) - powers to take action under competition law.
Financial Conduct Authority (FCA) - powers to investigate aspects of the energy market.
Supporting energy domestic and micro business consumers
Domestic and non domestic suppliers must establish relationships with the following organisations:
Citizens Advice Service
The Citizens Advice Service is the statutory watchdog for energy domestic and micro business energy consumers. It operates:
The Citizens Advice Consumer Service, which is the government funded, independent helpline for domestic and small business energy consumers. Contact them at operations@citizensadvice.org.uk
The Extra Help Unit, which exists to assist vulnerable consumers with energy and postal complaints and has duties under the CEAR Act to investigate complaints where the customer is disconnected or threatened with disconnection. It also has powers to request information from energy suppliers to investigate complex complaints. Contact them at complaints.info@consumerfutures.org.uk or 0800 458 2245
The Data Unit, which is responsible for publishing the Supplier Performance League Table. Suppliers are required to provide direct complaint returns and details of new tariffs. The Unit can also provide suppliers with weekly or monthly reports on contacts made to the Consumer Service or Extra Help Unit. Contact them at dataunit@citizensadvice.org.uk
The Energy Policy Team who can be contacted at energyteam2@citizensadvice.org.uk
Ombudsman Services Energy
Ombudsman Services Energy is the independent ombudsman scheme for domestic and micro business consumers. All active suppliers of domestic and micro business consumers must be a member of the scheme. OSE can deal with complaints that are over 8 weeks old or where the consumer has a deadlock letter.
Contact them at applications@ombudsman-services.org or 01925 430 870
Independent Energy Suppliers: Who do I go to for…..?
PDF, 224KB, 3 pages
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DECC/Ofgem independent suppliers forum
DECC and Ofgem host regular forums for independent suppliers to provide updates on key policy and regulatory issues. The forums also provide an opportunity for independent suppliers to raise concerns and issues with DECC and Ofgem.
Forum papers
DECC / Ofgem Independent Suppliers Forum: 2 February 2016 - Note of meeting
(PDF, 152KB, 9 pages)
DECC / Ofgem Independent Suppliers Forum: 2 February 2016 - Slides
(PDF, 1.93MB, 67 pages)
DECC / Ofgem Independent Suppliers Forum: 2 February 2016 - Quick Policy Updates
(PDF, 101KB, 3 pages)
DECC / Ofgem Independent Suppliers Forum: 6 July 2015 - Note of meeting
(PDF, 100KB, 6 pages)
DECC / Ofgem Independent Suppliers Forum: 6 July 2015 - Quick Policy Updates
(PDF, 95.4KB, 2 pages)
DECC / Ofgem Independent Suppliers Forum: 6 July 2015 - Slides
(PDF, 4.48MB, 101 pages)
DECC / Ofgem Independent Suppliers Forum: 28 January 2015 - Note of meeting
(PDF, 92.9KB, 5 pages)
DECC / Ofgem Independent Suppliers Forum: 28 January 2015 - slides
(PDF, 1.47MB, 62 pages)
Key documents
The following table summarises key documents affecting independent energy suppliers, which have recently been published by DECC. These include consultations for your attention to respond to, as well as policy papers and guidance on particular issues. Direct links to each publication are provided, explanations of why they are relevant, and any deadlines.
Topic
Document Type
Why is it relevant?
Date
DECC organogram
Organogram
Know the latest: provides an overview of the top level structure and senior team leaders.
Published monthly
June 2016
Warm Home Discount Scheme 2016/2017
Consultation outcome
Know the next steps: sets out the Government’s response to the Warm Home Discount (WHD) 2016/17 consultation, and outlines the changes which will be introduced to the scheme for 2016/17. The majority of these changes are relatively small
Published 29 June
Energy Company Obligation (ECO) Help to Heat
Consultation
Have your say: seeks views on proposed changes to ECO for 2017-18 and aspects of the high level design for a longer term supplier obligation (2018-22)
Published 29 June, closes 17 August
DECC: single departmental plan 2015 to 2020
Corporate report
Know the latest: describes the Department of Energy and Climate Change priority objectives for 2015 to 2020.
Published 6 June
May 2016
Smart meter roll out
Consultation outcome
Know the latest: Government response to the February Smart Energy Code and related Licence amendments consultation
Published 11 May
April 2016
Smart meter roll out
Consultation outcome
Know the latest: Government response to consultation on aspects of the implementation of Home Area Network solutions and on the operation and remit of the Technical-Sub Committee
Published 27 April
Smart meter roll out
Consultation outcome
Know the latest: Government response to consultation on alternative Home Area Network Solutions
Published 27 April
Smart meter rollout
Guidance
Know the latest: Smart Meters Derogation Guidance: supporting energy supplier applications for trials of in-home display alternatives
Published 27 April
Smart meter roll out
Consultation response
Know the latest: response to Part A of the March 2015 consultation on non domestic smart metering: the DCC opt out; response to Part B consultation on non domestic smart metering: advanced metering exception
Published 21 April
March 2016
Small Scale Feed in Tariffs
Consultation outcome
Know the latest: sets out Government response to the review of the Feed In Tariffs scheme, published 27 August
Published 17 December, updated 16 March
February 2016
Small Scale Feed in Tariffs
Statutory guidance
Know the latest: determinations legally required for administration of the scheme relating to a) the percentage of electricity from each technology deemed to be exported, b) how we recompense licensees’ administrative costs (QFCs), and c) the collar and cap range for mutualisation payments. Generation tariffs are not affected by this administrative process
Published 26 February
Smart meter roll out
Consultation outcome
Know the next steps: sets out the Government’s response to the December 2015 consultation on draft legal text extending the advanced metering exception end-date in the non-domestic sector
Published 4 February
Smart meter roll out
Consultation outcome
Know the next steps: sets out the Government’s response to the consultation on the In-Home Display (IHD) Licence Conditions. The Government will provide an opportunity for suppliers to undertake trials and gather evidence on innovative engagement tools in place of the requirement to offer an IHD when installing a smart meter. The document also confirms that outside of these trials, suppliers must make an unconditional offer of an IHD to domestic consumers
Published 4 February
Key topics
We have highlighted key policy areas that have an implication for independent energy suppliers, which you need to be aware of. For each policy area, a link is provided to more detailed information.
Electricity Market Reform (EMR)
EMR aims to stimulate the UK economy, introducing two key mechanisms to provide incentives for the investment required in our energy infrastructure – Contracts for Difference, and the Capacity Market.
EMR
Smart Meters
Energy suppliers are required to install smart meters – the new generation of gas and electricity meters – in all homes and small businesses by 2020. The main installation stage is due to start in late 2015.
Smart Meters
Energy Company Obligation (ECO)
ECO is an energy efficiency programme introduced in early 2013 which runs until March 2017. Under the rules of ECO, energy suppliers that have more than 250,000 domestic customers, and provide more than 400 gigawatt hours of electricity or more than 2,000 gigawatt hours of gas to these customers, are obliged to help improve the energy efficiency of their domestic customers’ buildings, with a particular focus on vulnerable consumers and hard to treat homes.
ECO
Ofgem is the Administrator for ECO and their website has information for suppliers.
Renewable Obligation (RO)
The RO places an obligation on UK electricity suppliers to source an increasing proportion of their electricity supplied from renewable sources. Suppliers must use RO certificates (ROCs), traded with accredited renewable generators, to demonstrate they have met their obligation.
Ofgem RO information for suppliers
Renewables Obligation information on GOV.UK
Feed-in Tariffs (FITs)
FITs were introduced in April 2010 to encourage deployment of small scale low carbon electricity generation. An electricity supplier who is a FIT licensee is responsible for providing FIT services to consumers, including making FIT payments.
Electricity suppliers with more than 250,000 domestic customers on 31 December the year preceding the FIT year are obligated to be a Mandatory FIT licensee. Those suppliers with fewer customers can opt to be a Voluntary FIT licensee.
All licensed electricity suppliers (regardless of FIT participation status) are required to make payments to the Levelisation Fund, based on their market share and any FIT payments made.
Ofgem administers the FITS scheme and the following link gives information to both consumers and to suppliers about the scheme.
FITs information on GOV.UK
Ofgem information on FITs
Warm Homes Discount (WHD)
A 4 year programme introduced in April 2011, administered by energy suppliers to provide rebates on electricity bills of households that need it most. An electricity supplier is currently obligated to be part of the WHD scheme if it had over 250,000 domestic customers on 31 December preceding that scheme year.
Warm Home Discount Scheme
Midata
The midata project is led by the Department for Business, Innovation and Skills (BIS). It works with businesses to give consumers better access to the electronic personal data that companies hold about them. It also aims to give consumers greater control of their data. To begin with, Government has been seeking voluntary involvement from 3 major sectors – energy companies being one of these.
Midata
Who to contact
DECC
Independent Supplier Lead: Dawn Armstrong
dawn.armstrong@decc.gsi.gov.uk
Independent Supplier Champion: Steph Hurst
steph.hurst@decc.gsi.gov.uk
OfGEM
Independent Supplier Engagement Lead: Vanessa Sturman
vanessa.sturman@ofgem.gov.uk
Independent Supplier Champion: Adam Cooper
Associate Partner
adam.cooper@ofgem.gov.uk