The Department for Energy Security and Net Zero (DESNZ) published a call for evidence in December 2024 reviewing the role of Ofgem, the energy regulator, including a proposal to extend its remit to enforce consumer law for low-carbon technologies1. The review is intended to revisit the regulator's role so that it can support an energy market where innovation and high standards drive better products and services for consumers1.
According to DESNZ, the review will focus on Ofgem's mandate, the powers it has to protect consumers, its scope and remit, the standards it sets, and how redress is made when standards are not met1. The department said it welcomed views on how government can establish an energy regulator fit for a more dynamic and high-performing energy market, and will consider how to set up Ofgem so it can regulate a fast-changing market and deliver a fair deal for consumers as the UK transitions to net zero1.
MCS, the UK's standards organisation for small-scale renewable technology, responded to the call for evidence on 6 March 20251. It said it supports the expansion of Ofgem's remit to enforce consumer law for low-carbon technologies, but argued that the expansion must take account of the distinct nature of the microgeneration sector, which it said operates very differently from the energy supply sector Ofgem has regulated to date1. MCS said the small-scale renewables market is largely made up of sole traders or small and medium-sized businesses, meaning the processes and mechanisms Ofgem currently uses may not be suitable or robust enough to regulate the sector effectively1.
"we propose a partnership with MCS as the established standard, quality assurance and consumer protection scheme"
MCS said it is already expanding its capability to take on the responsibility of monitoring installers and proactively addressing consumer issues before they escalate, as part of its scheme redevelopment, with the goal of resolving problems before they reach the stage where intervention from Ofgem would be necessary1. It cited its work on the Boiler Upgrade Scheme (BUS) as an example of successful partnership with Ofgem, and said it is open to an expansion of the role it performs today in support of the BUS, with the potential to support a wider range of technologies that consumers may wish to have in their homes1.
Why it matters for households
The proposal concerns who enforces consumer protection when a household buys a low-carbon technology such as a heat pump or solar panels. At present, energy complaints and redress for such purchases sit with a mix of bodies, including the standards schemes installers sign up to. If Ofgem's remit is extended, the regulator would gain a consumer-law enforcement role over these technologies, alongside its existing oversight of energy supply.
MCS's response argues that the sector's structure, dominated by sole traders and small firms, means supply-sector enforcement methods may not transfer directly. Its proposal is that a standards body such as the Renewable Energy Consumer Code (RECC) or MCS itself would sit alongside an extended Ofgem role rather than be replaced by it. For a household, the practical question is which body a complaint would go to, and how quickly it would be resolved. The call for evidence also covers how redress is made when standards are not met, which is the mechanism a household relies on when an installation goes wrong.
The review also touches on heat network regulation, where Ofgem already holds consumer protection duties, and on the wider regulation and policy landscape set by DESNZ.
What happens next
The call for evidence was published in December 20241. MCS published its response on 6 March 20251. No date for the government's response to the call for evidence, or for any decision on extending Ofgem's remit, has been reported1.
Sources1 cited
- MCS responds to Ofgem call for evidence on their role - MCS, mcscertified.com