Ofgem asks: how can you assess whether domestic competition is working well?

Ofgem has begun consultation on a framework for assessing whether conditions are in place for effective competition in the domestic energy retail market.

Ofgem and the Competition and Markets Authority (CMA), have consistently sought to increase competition in the energy industry, aiming for a large proportion of ‘engaged customers’, but neither had a specific definition of an engaged customer or a view on exactly how active customers would have to be to signal that there was a fully competitive market.

Now, however, Ofgem has to report to the secretary of state on a regular basis on the extent of competition in the retail market and whether it is effective for customers, in order to recommend whether the energy price cap shoud be lifted. It has published a proposed framework and is seeking comment by 9 July.

Further reading

Read the consultation here

What is an engaged energy customer? And how many make a competitive market?

‘Sticky’ customer databases, white label products, and customer switching: key data questions

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