In response to the rising wholesale energy prices, Ofgem published a letter on 29 October setting out the steps that it is taking to protect the short- and long-term interests of consumers.
In addition to its intention to consult this month on the current price cap methodology, Ofgem set out its expectation that suppliers must continue to comply with their licence conditions. Among other things, this includes:
- Ensuring that domestic customer’s ability to pay is taken into account when they are repaying debt or on a payment plan.
- Ensuring that customer service arrangements are complete, thorough, fit for purpose and transparent.
- Continuing to comply with environmental and social obligation scheme payments.
The regulator has deprioritised certain workstreams in order to deal with the current market challenges and said that it will be tougher when it comes to monitoring, compliance and enforcement.
In addition, it sets out its plans to ‘raise the bar’ in what it expects in terms of financial risk management, building on what has already been introduced through the Supplier Licensing Review. As part of this, it will be considering how existing licence conditions can be used, where licence conditions need to be strengthened and where new licence conditions may be needed.
In light of this, suppliers will need to make sure that they are meeting their licence obligations and keeping on top of compliance more than ever before. Our Energy Supplier Compliance Portal is an online resource setting out all of the rules that suppliers need to comply with. It is updated quarterly and tracks regulatory and compliance developments, such as changes to licence conditions, new licence conditions, signposting to guidance materials, and setting out examples of good practice. The latest update of the portal went live on 3 November.
Get in touch with Kate Morley-Hurst at email@example.com if you would like further information on the Energy Supplier Compliance Portal. We offer a walkthrough of the portal and a free trial so you can see how it can help you.