Energy Systems Catapult welcomes the opportunity to respond to Ofgem’s consultation on the development of a competition framework for the domestic retail market.

Key points

With regard to the proposals made in the consultation paper, key main messages include:

• The competition framework should be designed to unlock innovation and not hinder it.
• It should be simple and accessible to consumers.
• Tariff comparison must take into account innovative tariffs (such as dynamic tariffs).
• The framework should be used proactively to guide reform in existing policy / regulation (not just future interventions).
• Energy Systems Catapult tools, such as the Living Lab, can be used to improve evidence to demonstrate indicators – especially with regard to measuring innovation and customer satisfaction.
• The competition framework should be embedded within a wider, forward-looking consumer protection framework.

Energy Systems Catapult recently responded to the Department for Energy Security and Net Zero’s call for evidence on a more innovative energy retail market. The government sought views on aspects of the retail market policy and regulatory framework which may be acting as either barriers to innovation itself or to the ability of consumers to access the benefits of such innovation.

Energy retail must play a central role in supporting consumers to transition to Net Zero. Current arrangements are inadequate and ambitious reform is needed to unlock innovation and drive retail propositions that meet the diverse needs of future energy consumers.