PRESS RELEASE : Innovation at heart of plans to strengthen retail energy market [July 2023]

The press release issued by the Department for Energy Security and Net Zero on 24 July 2023.

Government sets out plans to boost competition and innovation in the energy market

Households across Great Britain will have better access to energy deals and more control over their energy use as part of government plans to boost competition and innovation in the energy market.

Energy Consumers and Affordability Minister Amanda Solloway today outlined plans to ensure consumers have a much wider range of using energy – whether that’s tariffs offering lower prices at certain times of the day, smart chargers that automatically put users on the lowest rate to charge electric vehicles or opportunities to buy shares in renewable energy in return for electricity bill discounts.

Already some retailers are offering these more flexible and tailored ways of using energy, but today’s plans would ensure even more households benefit from these opportunities.

Putin’s barbaric attack on Ukraine sent energy prices soaring, with the government stepping in to cover half a typical household’s energy bills this winter. However, despite prices falling by two thirds since their peak, the majority of suppliers are continuing to charge consumers the maximum amount allowed under the default tariff price cap instead of offering more innovative and flexible products.

As the government continues to work with stakeholders and consumer groups on energy bill support for vulnerable households, it wants to make sure the market is resilient, competitive, fit for the future and delivers for consumers.

That is why energy suppliers are today being asked to put forward ideas that will ensure consumers benefit from the cheaper cost of powering their homes as more of their electricity comes from renewables, and from using their energy when demand is lower.

Amanda Solloway, Minister for Energy Consumers and Affordability said:

The global rises in energy prices caused by Putin’s barbaric invasion of Ukraine shows why we need to bolster our energy security and strengthen our energy market, so families and businesses are protected, while getting a fair deal.

Over the winter, we provided unprecedented levels of support – including paying nearly half a typical household’s energy bill – and took decisive steps to stabilise the retail market.

We now want to put power back in the hands of consumers, giving them greater options to cut their energy bills in a market fit for the future. Today, I’m calling on industry to work with us, and take up the opportunities of investing in low-carbon technologies and providing a first-class customer service.

With energy from renewables now accounting for 40% of electricity supply, today’s announcement signals a positive step forward in future-proofing the market, as the UK transitions to a greener, more secure energy system.

The government wants energy retailers to play a driving role in unlocking barriers to innovation that will bring real benefits to both consumers and suppliers alike.

To that end, government will now work with industry to gather their views and evidence on ways to make low carbon technologies more commonplace, bringing out this monumental sea-change in our energy retail market.