Overview
The energy crisis has demonstrated that the energy retail market requires reform. We are calling for a series of actions to make energy more affordable and easier to understand and to ensure customers are prepared for the energy market of tomorrow.
Since the start of the energy crisis, we have committed £140m to supporting our customers. As part of this voluntary package, we recently launched a new initiative, ‘You Pay: We Pay’ to 100% match energy bill payments for struggling customers.
But retail reform is broader than consumer protection; it must be considered as part of a holistic package of measures to engage customers and deliver net zero. We would like to see a package of measures that will make the retail market simpler, affordable, sustainable and investable.
Policy asks
Introduce a targeted social tariff with broad enough eligibility to ensure that energy is affordable for those least able to pay. The price cap is effectively a social tariff where the costs for those who don’t pay are eventually recovered from those who do pay. However, it is a very inefficient social tariff and could be amended to charge different prices to consumers based on ability to pay.
The Government should improve data sharing with suppliers to help them better target available support. This enable us to act proactively rather than reactively in identifying and supporting those who need help.
Abolish standing charges and regional variations in tariffs for domestic customers on the price cap to simplify the market for energy customers. Recovering all costs through a single unit rate will make energy simpler, promote consumer engagement, encourage energy efficiency and make life easier for customers on prepayment meters.
Secure
Improving Energy Security
Sustainable
Drive a Just Transition to Net Zero
