Decision measures to enhance the operation of the small business energy market
Year | 2018 |
Published date | 27 September 2018 |
Energy Sector | Electricity retail |
Measures to Enhance the
Operation of the Small
Business Energy Market
Decision Paper
September 2018
About the Utility Regulator
The Utility Regulator is the independent non-ministerial government department
responsible for regulating Northern Ireland’s electricity, gas, water and sewerage
industries, to promote the short and long-term interests of consumers.
We are not a policy-making department of government, but we make sure that the
energy and water utility industries in Northern Ireland are regulated and developed
within ministerial policy as set out in our statutory duties.
We are governed by a Board of Directors and are accountable to the Northern Ireland
Assembly through financial and annual reporting obligations.
We are based at Queens House in the centre of Belfast. The Chief Executive leads a
management team of directors representing each of the key functional areas in the
organisation: Compliance and Network Operations, Finance and Network Assets,
Wholesale, Retail and Consumer Protection and Corporate Affairs. The staff team
includes economists, engineers, accountants, utility specialists, legal advisors and
administration professionals.
Value and sustainability in energy and water.
We will make a difference for consumers by
listening, innovating and leading.
Our Mission
Be a best practice
regulator: transparent, consistent, proportional,
accountable,
and
targeted.
Be a united
team.
Be
collaborative
and
co-operative.
Be
professional.
Listen and
explain.
Make a
difference.
Act with
integrity
.
Our Vision
Our Values
Abstract
Audience
Consumer impact
Protecting consumers is at the heart of the Utility Regulator’s (UR) role and promoting
measures to enhance the effectiveness of competition in the Northern Ireland (NI) energy
markets is an integral part of delivering our statutory duties. This paper sets out the
decision on the proposals to build transparency and trust in the competitive market for small
business customers in electricity and gas.
In 2016 the UR published its final decision paper for the Power NI 2017 Electricity Price
Control. This saw the removal of the price control from the remainder of Power NI’s small
business electricity customers. In parallel, the CMA energy market review in GB noted some
issues and concerns around the detrimental impacts on small businesses of some aspects
of the energy market. These new measures are aimed at making energy markets work
even better for small business customers in NI.
Whilst there is still price regulation for small business gas consumers we envisage these
new measures will apply to the small business gas market nonetheless, as we are of the
view they will not interfere with, but rather enhance, the gas small business market and can
co-exist with price regulation.
In October 2017 the UR consulted on the potential measures in the electricity and gas small
business markets that will help to make sure competition is as effective as possible for the
customers in these sectors. Most of the measures which were consulted upon already exist
for domestic consumers and are therefore not novel.
This paper sets out the decisions in relation to the measures consulted upon. The licence
modifications to implement the decision will be issued in due course.
Consumers and consumer groups; industry; and statutory bodies.
Small business consumers will see the benefit of a new set of measures with the aim of
enhancing the operation of the small business energy market. The direct consumer impact of
this will be in relation to the type of measures which are being implemented e.g. measures in
relation to contract clauses and clarity in relation to deposit requirements. The new measures
will not directly affect price. However, they may affect the level of deposits and exit fees for
example.
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