Ofwat seeks to simplify and recover costs from self supply

Ofwat has issued two consultations on the self supply regime. The first seeks to streamline and simplify the licence application process, including reducing the fee from £5,250 to £3,000. The second examines the case for introducing an annual administration fee for self-suppliers, to cover the regulator’s costs of overseeing the market.

Ofwat senior director Emma Kelso said: “Today’s consultations will help inform our work to ensure that the retail market is working to its full potential and delivering for both customers and suppliers.

We think the process for applying for a self-supply licence should and could be simpler and cheaper. But we also think those with a self-supply licence ought to contribute to covering the ongoing costs incurred from this work. This is about being fair, transparent and reflective of the costs associated with the self-supply process.”

Separately, Ofwat is also consulting on a proposal to modify the standard licence conditions that apply to retail licences (WSSLs), including those WSSLs limited to self-supply.