Ofgem mulls “fundamental” reform of energy supply market
The regulator wants ideas on how it might go about making new rules to enable other parties, such as technology companies, to deliver new services to customers in a bid to improve competition.
According to The Energyst, Nolan repeatedly referred to peer-to-peer energy platforms in a blog post explaining the call for evidence.
Such platforms would enable companies or households to buy energy direct from one another or from generators. But they are currently hamstrung by a system which places a heavy licencing burden on market entrants. Meanwhile, suppliers tend to have a significant say on how the market works, and which rules are put in place.
At present, suppliers buy energy from generators, add in policy and network costs, and bill customers, acting as middlemen for a number of parties that require a cut of the overall bill. They also have to balance their trading position and comply with a number of rules and requirements.
