In December 2024, the Department for Energy Security and Net Zero (DESNZ) published a call for evidence for the following:
We are undertaking a review of Ofgem, with the aim of revisiting the role of the regulator to ensure that it can support an energy market where innovation and high standards help drive better products and services for consumers, giving them more options to make choices more suitable for their circumstances.
The review will focus on:
- Ofgem’s mandate
- the powers it has to protect consumers
- its scope and remit
- the standards it sets
- how redress is made when standards are not met
As part of the call for evidence, DESNZ has specifically welcomed views on how the government can establish an energy regulator that is fit for the more dynamic and high-performing energy market of the future. It will consider how to set up Ofgem so it can regulate a fast-changing market to deliver a fair deal for consumers as we transition to net zero. As part of this, DESNZ put forward a proposal to extend Ofgem’s remit to enforce consumer law for low-carbon technologies.
As the UK’s standards organisation for small-scale renewable technology, MCS is closely involved with the deployment of home-grown energy, and therefore in a position to provide evidence on the role of Ofgem.
MCS supports the expansion of Ofgem’s remit to enforce consumer law for low-carbon technologies
However, it is important that this expansion takes into account the distinct nature of the microgeneration sector, which operates very differently from the energy supply sector that Ofgem has regulated to date. The small-scale renewables market is largely made up of sole traders or small and medium-sized businesses (SMEs), meaning the processes and mechanisms Ofgem currently uses may not be suitable or robust enough to regulate this sector effectively. Therefore, we propose a partnership with MCS as the established standard, quality assurance and consumer protection scheme. We believe MCS is in a unique position to support Ofgem in an extended role for small-scale renewables, as we have the knowledge, expertise, and experience to navigate the complexity and distributed nature of the sector.
We are already expanding our capability to take on the responsibility of monitoring installers and proactively addressing consumer issues before they escalate as part of our Scheme redevelopment. Our goal is to resolve problems early on — well before they reach the stage where intervention from Ofgem would become necessary.
Our work on the Boiler Upgrade Scheme (BUS) is an example of our successful partnership with Ofgem, which demonstrates our ability to effectively collaborate with the regulator. MCS is open to an expansion of the role we perform today in support of the BUS, with the potential to support a wider range of technologies that consumers may wish to have in their homes.
In this respect, MCS can complement the proposed extended role for Ofgem.