Department for Energy Security & Net Zero review of OFGEM: A Call for Evidence - Which? response

Summary

We welcome the opportunity to provide input into the government’s review of OFGEM. At a time when many consumers are struggling to pay their energy bills and levels of energy debt are at historically high levels it is important that OFGEM is effectively protecting consumers interests. In addition, the energy sector is entering a period of significant change driven by the transition to net zero, when consumer trust and confidence will be critical to the adoption of new products and services.

• OFGEM’s mandate should be clearly focused on protecting the interests of existing and future consumers, and its duties should include a new duty to tackle fuel poverty.
• We recognise the potential benefits of an outcome based consumer duty, though prescriptive conditions will still be required to provide clarity for businesses and consumers, particularly where there is a high risk of consumer harm.
• We strongly support the proposal to give OFGEM enhanced investigatory and enforcement powers, as this will give them the ability to effectively and efficiently enforce compliance with consumer law. 
• We support measures to increase transparency in relation to energy companies performance and OFGEM processes. This will enable consumers to make more informed decisions and increase confidence and predictability in the sector.
• Consumer confidence and trust will be critical to supporting innovation and investment in the sector. With the right skills and capacity, OFGEM could play an important role in enforcing high standards in the low carbon technology and home retrofit sectors by providing oversight and teeth to trading standards and the certification schemes that are already required for work done under government and ECO funding schemes.