SSE Energy Services welcomes move to level the energy playing field, but calls for caution on locking in long term price intervention
Commenting on BEIS and Ofgem joint consultation on future of energy retail market, published yesterday, Tony Keeling, Managing Director of SSE Energy Services, said:
“It’s very welcome that Government and Ofgem are at last looking to create a level playing field – not only for different suppliers, but also for third parties like switching services.
“Fair and efficient markets are the best way to ensure innovation and help pave the way to net zero.
“Reforms should consider how to keep promoting competition rather than locking in long term regulatory price interventions.”
- BEIS and Ofgem launched a joint review of future energy retail market regulation in 2018.
- As part of the review, BEIS and Ofgem have published a consultation titled “Flexible and Responsive Energy Retail Markets” on 22 July – read the full consultation document on BEIS website.
- The consultation sets out a vision for the future energy retail market, which among other things notes that:
- suppliers can find it difficult to develop innovative services because of the highly prescriptive regulatory framework;
- policy obligations can distort competition and administrative costs of obligations limit suppliers’ ability to focus on bringing new products to market; and
- there is a risk that the uneven way that higher cost-to-serve customers are distributed across the market could contribute to market distortions.