Ofgem published a framework consultation for the electricity distribution price control ED3 in November 2024, according to its Consumer Vulnerability Strategy. ED3 is the price control period that commences in 20281. The consultation is recorded in the strategy's timeline as "the publication of a framework consultation in November 2024"1.
The same document sets out a separate consultation timetable for the Consumer Vulnerability Strategy itself. That consultation opened on 10 September 2024 and closed on 5 November 2024, with the decision and final strategy published on 15 April 20251. Ofgem said it received 67 responses, which it considered in shaping the final refreshed strategy1.
"Following stakeholder consultation, we have decided to introduce a narrower and more targeted Consumer Vulnerability Strategy."
The strategy document also records other regulatory activity in the same period. Ofgem published a Debt Strategy in December 2024 setting out four components of work to reduce debt and arrears in the domestic energy market1. In December 2024, the Department for Energy Security and Net Zero announced a review of Ofgem's duties, mandate, powers and approach to enforcement1. In February 2025 Ofgem published a consultation on a zero price cap variant in the domestic retail market1.
On payment failures, Ofgem said the new payment level of £40 per failure took effect from January 20251. On 10 April 2025 it published its decision to activate dormant supplier licence condition SLC 31G.3A(c), taking effect from 1 August 20251.
The strategy reports figures on household debt and vulnerability. By the end of September 2024, individuals in arrears without a repayment plan owed an average of £1,568 for electricity and £1,324 for gas1. As of March 2025, around 7 million UK adults were behind on at least one household bill, with approximately 1.4 million adults behind on their energy, council tax and water bills1. As of July 2024, approximately 5.6 million households were in fuel poverty in the UK1. In April 2024, 15% of respondents aged 65 or over with a household income of £15,000 or less reported being in debt to their energy company1.
Why it matters for households
ED3 sets the allowed revenues and service expectations for the companies that run the local electricity wires reaching homes, and it begins in 2028. The framework consultation is the early stage that shapes how those companies will be regulated over the period, including what they are expected to deliver for the households connected to their networks. The document does not set out ED3's detailed allowances, targets or household bill impacts; those have not been reported here.
The Consumer Vulnerability Strategy sits alongside this work and sets out how Ofgem expects energy companies to treat consumers in vulnerable situations, including identification and use of data, support for those struggling to pay, customer service and inclusive innovation1. Ofgem said its vulnerability definition should remain intentionally broad, and that financial-specific definitions are best picked up within its Debt Relief Support Scheme and government energy affordability work1. The strategy also commits to annual Vulnerability Focus Sessions with suppliers and a progress report on outcomes for consumers in vulnerable situations1.
For a household, the practical link between these strands is that network regulation and consumer protection rules are being reviewed in parallel, with the government's review of Ofgem's role potentially bearing on how protections are set1. Ofgem said that once that review is finalised and government has determined its future role, it will work through any implications for the Vulnerability Strategy, including its themes and outcomes1.
What happens next
ED3 commences in 20281. The Consumer Vulnerability Strategy decision was published on 15 April 20251. The activation of dormant supplier licence condition SLC 31G.3A(c) takes effect from 1 August 20251. The outcome of the government's review of Ofgem's duties, mandate, powers and enforcement approach has not been reported1.
Sources1 cited
- Consumer Vulnerability Strategy, ofgem.gov.uk