The Department for Energy Security and Net Zero published a policy paper, Delivering a better energy retail market, on 24 July 2023, setting out the government's vision for the future energy retail market alongside a package of targeted reforms1. The paper was published under the 2022 to 2024 Sunak Conservative government and runs to 20 pages1.
The document states that the retail energy market needs reform, citing three pressures: unprecedented high prices that have necessitated substantial, untargeted government intervention; poor financial resilience that has led to costly supplier insolvencies; and high profile cases of poor treatment of vulnerable consumers on prepayment meters1. It adds that even before the onset of high gas prices there was little investment in innovation and customer service standards were often poor1.
The vision set out in the paper is for a market that works better for consumers, is more resilient and sustainable, and supports wider energy system transformation1. The government said it had already published a new vision for the market in Powering Up Britain, and that some reforms are underway in line with it, including work to improve financial resilience and strengthen consumer protections1. It said further work is needed, particularly to ensure consumers can fully benefit from the transformation of the energy system to align with net zero1.
"This package of announcements is a key step towards delivering on our vision."
The paper says it provides further detail on what the government sees the future retail market looking like and paves the way for further focused reforms1. A related press release, Innovation at heart of plans to strengthen retail energy market, was also published1.
Why it matters for households
The paper describes a market in which households have faced high prices, supplier failures and, in some cases, poor treatment on prepayment meters1. Those are the conditions the reforms are intended to address. For a household's energy independence, the practical questions are what the market allows: how easily a home can switch supplier, what protections apply when a supplier fails, and whether the rules support homes that generate or store their own electricity. The paper states the vision is for a market that works better for consumers and supports wider energy system transformation, but it does not set out in this document which specific measures will follow1. The detail on reform options is left to the consultation promised for later in 20231. The rules that govern energy regulation and policy in the UK, and the process by which consultations turn proposals into decisions, are the routes through which any of this reaches a household.
What happens next
The government said it intends to follow up with a consultation on options for reform later in 20231. No date for that consultation has been reported.