Energy regulator Ofgem has unveiled measures to “make the energy market work better for consumers” during the next financial year.

The watchdog aims to improve competition and increase consumer confidence.

Dermot Nolan, Ofgem’s Chief Executive, said: “Over the next year we will take big steps towards delivering a better energy market for consumers.

“Many changes will be brought in as we head towards a smarter market that should revolutionise energy, giving consumers much more control.”

Flexibility savings of £17-40bn by 2050

Measures include:

  • preparing the next Revenue=Incentives+Innovation+Outputs (RIIO) price controls for gas and electricity transmission, and gas distribution from 2021;
  • introducing more principles-based regulation for suppliers;
  • expanding competition by introducing a tendering mechanism for high-value onshore transmission upgrades;
  • increasing flexibility in the energy system, which could save £17-40 billion by 2050.

A consultation on the proposals runs until 15 February.

> Take part in the consultation