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Self-disconnection and self-rationing final proposals – statutory consultation

This statutory consultation confirms our proposals to improve outcomes for consumers who self-disconnect, self-ration and are struggling to pay their energy bills. In August 2019, we consulted on our initial policy proposals to help protect these consumers given the significant negative impacts experienced by consumers, particularly for those in vulnerable circumstances.

In March 2020, we temporarily paused our reform of licence obligations in this area, to enable the energy industry to focus on the immediate and urgent priorities arising from the COVID-19 crisis. We consider that it is now time to resume this critical work as this is a priority area for Ofgem and the energy sector.

We have carefully considered the responses to our policy consultation, engagement with stakeholders, and we have taken into account initial impacts of COVID-19. We have published draft notices and a draft Impact Assessment (IA) alongside this statutory consultation. The draft IA identifies a range of cost and benefits on consumers and businesses for a number of policy options and presents the impact of our preferred package of proposals.

We seek your views on the revised proposals and draft licence conditions in this statutory consultation and accompanying draft notices and draft IA.  Please respond to CDconsultations@ofgem.gov.uk by close of business on 24 August 2020.

Subject to reviewing responses to this consultation, we expect to publish our licence modification decision notices later this year. Any licence changes would take effect 56 days after publishing the decision notices and our intention is for these protections to be in place by the end of 2020.