In the wake of Ofgem’s financial stress tests which come into effect next month on UK retailers, the government has announced that it will review its Energy Retail Market Strategy, released earlier this year.
In a report, Secretary of State Kwasi Kwarteng signals D-BEIS’ intention to seek input on how the plan should be updated, following the elimination this year of nearly 30 approved vendors.
A triple mantra of protecting consumers, promoting competition, and promoting product innovation and grid decarbonization has guided the government’s approach to energy retailing.
Once the unrest among suppliers and wholesale sourcing stabilizes, Kwarteng’s statement shows that these principles will endure. But the lessons of the last few months must be learned, in particular to observe and implement them in times of market upheaval, such as the almost tripling of gas prices traded in 2021 on global wholesale markets.
Billing the scheduled exam as a “refresher”, Kwarteng continues:
“This vision remains the right one. However, we must also consider the lessons of recent months to ensure that the retail energy market is resilient, sustainable and continues to protect consumers as we transition to a net zero energy system”.
An overhaul of the energy price cap is needed, the minister said. Given parliamentary time, the government remains committed to passing legislation extending the energy price cap beyond the current deadline of December 2023.
Read the statement here
Related
