We support Ofgem’s intent to improve fairness and consumer choice by requiring suppliers to offer a lower-standing-charge tariff. While a positive interim step, the proposal in this consultation lacks clarity on how it will address risks like reduced competition and higher bills for some low-standing-charge customers.

Key points

• For meaningful progress on fairness and affordability, Ofgem must enable diverse retail offerings and drive efficiency across wholesale, network, and policy costs.
• Ofgem should set out a clear, upfront plan to identify and proactively manage the risks of its proposal, particularly for reduced competition and consumer harm.
• Recent research we have published on Innovating Beyond Retail and Inclusive Smart Solutions highlights that retail reform must enable innovation in tariff design to unlock flexible consumer offerings; reform cost recovery for whole-system efficiency and decarbonisation; and protect consumers equitably.