Ofgem published a Call For Input (CFI) on consumer consent in November 2023, presenting industry stakeholders with three options for solution design alongside a "do-nothing" or "business-as-usual" approach1. The regulator said the energy sector "currently lacks a single, standardised process for obtaining and managing consumer consent to share energy data", which it said leads to inconsistent practices, consumer confusion and "consent fatigue"1.
The three options set out were a single technical solution such as a Consumer Consent solution or dashboard; a set of principles and guidelines outlining a consistent way for trusted market participants to obtain consent; and a voluntary industry-developed code2. A fourth option was to do nothing and allow consent processes to continue without intervention2.
Following the Call For Input, Option One, a single technical solution, emerged as the preferred approach, with 74% of respondents identifying it as the most favourable2. Ofgem said the Call For Input showed 87% respondent support for action1.
"In November 2023 we published our Call For Input (CFI) here we presented three options to industry stakeholders on solution design as well as a 'do-nothing' or 'business-as-usual' approach."
Ofgem has since selected RECCo as the delivery body to design, develop and deploy the Consumer Consent Solution1. In August 2024 it consulted on its preferred policy option to appoint RECCo, and in April 2025 it confirmed its minded-to position that RECCo would be the delivery body1. The regulator consulted on the draft impact assessment for delivery by RECCo Ltd on 30 October 20252.
The final impact assessment sets out monetised benefits and costs across three scenarios, with a timeline of analysis from 2025 to 2033 and a monetised base year of 20252.
| Scenario | Benefits | Costs | Benefit-cost ratio |
|---|---|---|---|
| Average or expected | £345.92m | £86.48m | 4.00 |
| Worst case | £100.49m | £101.27m | 0.99 |
| Best case | £564.38m | £78.69m | 7.87 |
The worst case scenario assumes that only 20% of benefits occur2. Ofgem said it has increased its estimate of overall costs accrued by industry parties as a result of the Consumer Consent Solution, reflected in an increase of indirect costs from 11-17% of the cost estimate set out by MHHS to 15-22%2. It said it expects these costs to be recovered via the REC Cost Recovery Mechanism and thus evenly spread between consumers2.
Why it matters for households
The Consumer Consent Solution is intended to give consumers control over their energy data, with tools to grant, manage and revoke consent1. Ofgem said the primary objective is to empower individuals by providing a secure, digital solution for sharing their energy data with trusted market participants, which it said will enhance consumer trust in data-sharing services and improve access to personal data across the energy sector1.
The regulator said the development of a digital consent solution is a critical enabler for accelerating the transition to Clean Power 2030, whose ambition includes achieving 10-12 GW of capacity through consumer-led flexibility1. A trusted, standardised and consistent mechanism for consumers to share their energy data is described as a foundational requirement for this goal and a core component of future Smart Data Schemes1.
The costs of the solution are expected to be recovered through the REC Cost Recovery Mechanism and spread evenly between consumers2. The final impact assessment states that the quantified benefits of implementing the Consent solution are potentially greater than the costs1.
What happens next
The consultation on the draft impact assessment closed on 13 November 20251. Ofgem said that after this date it will consider all responses and evidence provided, and will publish the non-confidential responses alongside a decision on the Consent Solution and next steps1. The policy will be reviewed, with a scheduled review date set for July 20282.
Sources2 cited
- Consumer Consent, ofgem.gov.uk
- Consumer Consent, ofgem.gov.uk