Ofgem outlines key priorities in latest work programme

Energy regulator Ofgem has published its key objectives and priorities as part of its latest forward work programme for 2019-21.

The 23-page document emphasises the need to improve the market for vulnerable and disengaged customers, as well as ensuring the networks are developed to enable “efficient future energy markets”.

Improving current licensing arrangements to protect consumers and ensure that regulatory burdens “are appropriate” was a key priority listed in the document.

Ofgem cited the fact that a number of suppliers have entered its supplier of last resort (SoLR) process in recent months.

It said it was important to emphasise the SoLR process is “functioning well” but added it will continue its review into supplier licensing arrangements to assess whether minimum standards for new and existing supplier licensees are sufficiently robust.

In particular, the regulator will seek to understand if its customer service standards and financial requirements are stringent enough to ensure that consumers are protected.

In January this year Ofgem’s chair Martin Cave said the regulator will be outlining plans to tighten up controls on how suppliers handle customers’ balances and that it is exploring moves to extend regulation to energy intermediaries.

Tackling customer engagement and vulnerability were also listed as priorities for the regulator.

The document cites a number of issues with the market for vulnerable customers including those struggling to engage because of billing complexities or not having access to the internet or bank accounts.

There are also issues with affordability of energy and with debt, it added.

The introduction of the price cap on 1 January this year was mentioned as being the “start, rather than the end” of giving customers value for money.

Furthermore Ofgem said its overall goal is to improve the quality of smart metering services, as well as lowering customers bulls as a result of an increased uptake of the devices.

Writing in the document, Ofgem’s chief executive Dermot Nolan said: “I have been saying for a number of years that the energy system is undergoing rapid changes, and that we expect the scale and pace of these changes to continue.

“To support this, we will play our role in facilitating the UK’s transition to a decarbonised energy system and to enable smarter and more flexible system arrangements that will benefit consumers.

“The renewable energy and social schemes that we deliver on behalf of government, will also remain at the forefront of the country’s efforts to reduce carbon emissions and to improve energy efficiency.

“In regard to these schemes, we will strengthen our ability to detect and tackle unethical behaviour, fraud and non-compliance. We will also improve value for money in the way we administer them and the level of service that we offer.”