Ofgem’s fair trading rules for energy suppliers to come into force by the end of March
The energy market is heading towards a pretty significant shake-up in just a month’s time, when Ofgem’s new rules that will force the six largest suppliers and the largest independent generators to trade fairly with independent suppliers in the wholesale market come into force.
As a news report on this topic points out, the new set of rules will certainly help the smaller players in the market, since the big six will have to uphold a very strict set of rules or face significant financial penalties.
Additionally, the larger players will have to publish the price at which they will trade wholesale power up to two years in advance, on a daily basis and in two one-hour windows, giving independent suppliers and generators the opportunity and products they need to trade and compete effectively.
Ofgem CEO Andrew Wright said: “Our rules for a simpler, clearer, fairer energy market are coming into force, meaning that it is getting easier for consumers to pick out the best deals. Now we are also breaking down barriers to competition for new entrant suppliers.”
These reforms give independent suppliers, generators and new entrants to the market, both the visibility of prices and opportunities to trade that they need to compete with the largest energy suppliers. Almost two million customers are with independent suppliers, and we expect these reforms to help these suppliers and any new entrants to grow.”
Mr. Wright continued by saying: “We also want to ensure that information on revenues, costs and profits of the largest energy suppliers is as clear as possible for consumers. No other European regulator has gone as far as Ofgem in making this information accessible for consumers. Now we are taking further steps to ensure that it is published more quickly, and that it gives a robust, useful and accessible picture of company profits. Both of these reforms will help ensure competition bears down as effectively as possible on prices.”