Where next for energy retail price regulation? | KPMG | UK

Where next for energy retail price regulation?

Where next for energy retail price regulation?

With the secretary of state for business, energy and industrial strategy, Greg Clark, urging Ofgem, to consult on alternative options for reducing energy bills through market intervention - we consider the options available to Ofgem.

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Partner and Head of Power and Utilities

KPMG in the UK

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where next for the energy retail price regulation - illustration of s signpost pointing in three different directions

Greg Clark, Secretary of State for Business, Energy and Industrial Strategy, wrote to Ofgem on 21 June, asking them to advise him “on what actions [they] intend to take in three respects:

  • Safeguarding customers on the poorest value tariffs
  • Ensuring that micro businesses are fairly treated
  • Considering the future of standard variable tariffs”

This follows a decision by the Government in the Queen’s Speech not to legislate immediately on a price cap for all customers on Standard Variable Tariffs (SVT).

With many possibilities available to Ofgem, we have provided an overview of eight different interventions that could potentially be implemented, providing advantages and disadvantages for each.

Read more about Where next for retail price regulation?

We have also assessed the original proposal of a price cap for all SVT customers in our ‘What would a price cap mean for the energy market?’ report.

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