Energy Retail Policy and Consultation

The Government have released a policy paper: Energy retail market strategy for the 2020s, which sets out our vision of the role of the retail market in achieving net zero. It describes how, by setting a framework that incentivises energy companies to innovate for and engage with their customers, the government will work with the market to take consumers on the journey to a net-zero energy system.

In the December 2020 Energy white paper, the government announced plans to address the factors that have caused excessive charging in the domestic energy retail market on an enduring basis. We are therefore:

  • creating the framework to introduce an opt-in switching scheme, where households on the most expensive tariffs are offered a simple method of switching to a cheaper tariff
  • testing opt-out switching, where, unless they choose not to be, consumers who haven’t switched for a while are switched to a competitive new contract. This will be part of considering how default arrangements might be reformed to enable greater competition

In this consultation, detailed proposals and options were set out, and it is hoped that stakeholders will be able to share their views on these to facilitate effective policy development. Therefore, the government are seeking views on how the government should incrementally introduce an opt-in switching scheme and test opt-out switching by 15 October 2021.