The Energy Ombudsman published its response to Ofgem's Forward Work Programme 2025/6 consultation on 7 February 2025, setting out its support for the regulator's retail market priorities, pricing and debt reforms, smart meter enforcement, half-hour settlement, aggregator licensing and guidance on artificial intelligence1.
On pricing, the Ombudsman said reforms to standing charges and work on debt and affordability would help consumer confidence. It also backed Ofgem's Consumer Confidence Programme, aimed at improving customer service and trust in the retail sector, and said it would keep working with Ofgem and the Department for Energy Security and Net Zero (DESNZ) on preparations for heat network regulation1.
"We think that Ofgem's plans to look at how they regulate pricing, including reforms to standing charges and taking steps to look at debt and affordability will help increase consumer trust and confidence"
On the flexible energy system, the Ombudsman supported continuing enforcement of the smart meter rollout and the introduction of mandatory half-hour settlement. It also backed licensing and regulation of aggregators and remote load controllers from 2026 onwards, saying this would increase competition and innovation in demand-side response and protect consumers from risks such as mis-selling or confusion as choice grows1. It described regulatory guidance to the energy sector on artificial intelligence as the right step to maximise benefits and minimise potential harms1.
The response also covered the Ombudsman's own remit. It said it would respond to the DESNZ Review of Ofgem call for evidence, which also examines the Energy Ombudsman, and that it would work with DESNZ and Ofgem on three aims: that consumers can access its service simply and promptly; that it has the right powers to enforce signposting, implementation of remedies and identification of regulatory failures; and that significant gaps in consumer redress across the wider energy market are covered by the Ombudsman1.
Why it matters for households
Standing charges are the fixed daily amount a household pays for supply regardless of how much energy it uses, so any reform changes the part of a bill that usage cannot reduce. Debt and affordability work touches households already behind on payments. The Ombudsman's support for Ofgem's programme is a position on the regulator's plans rather than a decision, and no detail of what reformed standing charges would look like appears in the response1.
Smart meter enforcement and half-hour settlement concern how consumption is measured and billed, which underpins time-of-use tariffs and demand-side response. Aggregator licensing from 2026 would bring companies that bundle households' flexibility into a regulated framework, which the Ombudsman links to mis-selling risk1. For households with a faulty meter or a disputed bill, the Ombudsman's own powers and the coverage of redress gaps are the practical question, and its response sets out where it sees those gaps. The site's guide to energy complaints and redress explains how the Ombudsman, Citizens Advice and Ofgem divide this work.
What happens next
Ofgem's Forward Work Programme 2024/25 was published on 9 February 20241. Ofgem's decisions following the 2025/6 consultation have not been reported in the response.
Sources1 cited
- Ofgem Forward Work Programme 2025/6 consultation | Energy Ombudsman, energyombudsman.org