Ofgem is reviewing its approach to supplier licensing to strengthen the regulatory regime, improve standards of financial resilience and provide better consumer protection. These reforms are part of a move to improve customer service standards and minimise the likelihood and impact of disorderly supplier failure.
The measures are designed to (i) promote more responsible risk management, (ii) improve governance and increase accountability, and (iii) enhance Ofgem’s market oversight. These changes build upon the enhanced entry requirements introduced in July 2019.
The decision follows extensive stakeholder engagement over the last year and takes into account the responses to a statutory consultation in June 2020.
The new requirements will take effect on and from 22 January 2021, with the exception of the Customer Supply Continuity Plans requirement, which will take effect on and from 18 March 2021.
Ofgem is seeking views on the proposed content of the Financial Responsibility Principle guidance (Appendix 3 of the decision document) by 22 January 2021. Send any responses to firstname.lastname@example.org.