Ofgem has published its final impact assessment for a digital Consumer Consent solution, confirming RECCo Ltd as the delivery body to design, develop and deploy the platform1. The assessment follows the regulator's August 2024 consultation on its preferred policy option to appoint RECCo to the role2, and its April 2025 confirmation of that minded-to position2. Ofgem consulted on the draft impact assessment on 30 October 20251.
The problem set out is that the energy sector lacks a single, standardised process for obtaining and managing consent to share energy data, which Ofgem says leads to inconsistent practices, consumer confusion and "consent fatigue", limiting access to datasets such as smart meter data2. The solution is intended to give consumers real-time tools to grant, manage and revoke consent2. Ofgem's energy consultations process ran through a November 2023 Call For Input, which presented three design options plus a do-nothing approach2. Option One, a single technical solution, was preferred by 74% of respondents1.
The final assessment monetises the preferred option over 2025 to 2033, in September 2025 prices, with a 2025 base year1:
| 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 assumes only 20% of benefits occur1. Ofgem has also increased its estimate of industry-wide costs, raising indirect costs from 11-17% of the cost estimate set out by the Market-wide Half Hourly Settlement programme to 15-22%1. It expects these costs to be recovered through the REC Cost Recovery Mechanism and spread evenly between consumers1. The initial scope covers domestic and small business smart meter data only, with scope to expand to non-domestic meters and advanced meters in future1.
"Ofgem has selected RECCo as the delivery body to design, develop and deploy the Consumer Consent Solution."
Why it matters for households
The Consumer Consent Solution concerns the data a household's smart meter produces and who may use it. Under the proposals, a householder would have a single place to give, change or withdraw permission for that data to be shared, rather than dealing with separate processes from each company2. Ofgem frames this as giving consumers control over their data and reducing barriers to taking part in a more digitalised energy system2. The costs of building and running the platform are expected to be recovered from consumers through the REC mechanism, so the scheme carries a cost to bills as well as potential savings1. The assessment states that quantified benefits are potentially greater than costs in its central and best cases, but in the worst case costs slightly exceed benefits1. The regulator's role in mandating the solution, and the Renewable Energy Consumer Code body's delivery role, sit alongside existing arrangements for complaints and redress if consent is mishandled.
What happens next
The policy will be reviewed, with a scheduled review date set for July 20281. The assessment refers to releasing the MMP on 31 March 20272. Ofgem has not reported a confirmed launch date for the platform itself.
Sources2 cited
- Consumer Consent, ofgem.gov.uk
- Consumer Consent, ofgem.gov.uk