{"id":25173,"date":"2024-08-20T16:08:19","date_gmt":"2024-08-20T15:08:19","guid":{"rendered":"https:\/\/www.retailenergycode.co.uk\/?p=25173"},"modified":"2024-08-20T16:08:19","modified_gmt":"2024-08-20T15:08:19","slug":"were-ready-to-bring-consumer-consent-to-the-retail-energy-market","status":"publish","type":"post","link":"https:\/\/vwd.website\/fs\/were-ready-to-bring-consumer-consent-to-the-retail-energy-market\/","title":{"rendered":"We\u2019re ready to bring consumer consent to the retail energy market\u00a0"},"content":{"rendered":"

Ofgem has <\/span>launched a new consultation<\/span><\/a> on the development of an industry-wide consumer consent mechanism that will make it easier for consumers to consent to sharing their energy data. When shared securely with trusted third parties, this data will be key to reducing consumer bills, reducing energy and focusing on when people use energy, ultimately enabling net zero. We\u2019re pleased to have been recommended as the \u2018delivery body\u2019 for governance under the Retail Energy Code (REC) and the digital solution. <\/span>\u00a0<\/span><\/p>\n

The work towards consumer consent so far<\/span><\/b>\u00a0<\/span><\/h2>\n

In 2021, the Energy Digitalisation Task Force (EDiT) identified the need for a consumer consent portal to enable future market innovations, deliver Net Zero, and reduce consumers’ energy costs. By introducing consumer consent to the market, consumers will be able to share their energy data with trusted market participants in a transparent and proactive manner, who can provide them with services to lower their bills and carbon footprint. <\/span>\u00a0<\/span><\/p>\n

However, there is currently no single, standardised process for obtaining consent to share consumer energy data, which creates barriers to entry for new beneficial services and reduces clarity, via inconsistency, with consumers on who has access to their data and for what. Therefore, Ofgem has proposed overhauling the mechanism and creating a robust solution for obtaining informed consent. <\/span>\u00a0<\/span><\/p>\n

We\u2019ve been active in the open data and consumer consent conversation since 2022. Our paper, \u2018<\/span>Consumer Consent: Consumer-focused findings,<\/span><\/a>\u2019 builds on the work of EDiT. It identifies the key barriers to introducing a consent mechanism in the energy market and proposes five key principles that we believe should be applied to its development.\u00a0<\/span>\u00a0<\/span><\/p>\n

Our <\/span>2024-27 Forward Work Plan<\/span><\/a> also highlighted our consumer consent plans as a central part of our Data and Digitalisation priority, noting, \u201cWe support the Energy Digitalisation Task Force (EDiT) recommendations, including the need for a consumer consent portal. We have been working collaboratively with industry partners Ofgem, DESNZ and Innovate UK to build collateral that will facilitate the development and implementation of this mechanism. This work has taken a \u2018consumer first\u2019 approach to identifying the issues and potential remedies associated with obtaining consent, incorporating various consumer personas.\u201d<\/span>\u00a0<\/span><\/p>\n

Ofgem\u2019s consultation<\/span><\/b>\u00a0<\/span><\/h2>\n

In November 2023, Ofgem published a Call For Input titled \u2018<\/span>Data Sharing in a Digital Future\u2019’<\/span><\/a>,<\/span> seeking input from interested Parties on the need for and best approach to addressing issues surrounding\u00a0 Consumer Consent. Based on the responses received, Ofgem is now consulting on the development of a digital solution that will \u201cenable consumers to share their energy data with trusted third parties to receive tailored services to manage their energy bills.\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n

As part of the consultation, Ofgem has proposed that RECCo act as the Delivery Body responsible for developing a digital solution that aligns with their design principles. RECCo scored \u2018green\u2019 in all their rating categories, positioning us as the best place to deliver the solution. The REC Board fully supports Ofgem\u2019s proposal, and we will be submitting a response to emphasise that including governance within the REC alongside appointing RECCo as the Delivery Body for the <\/span>consumer consent mechanism strongly aligns with our Mission Statement and REC Objectives to:\u00a0<\/span>\u00a0<\/span><\/p>\n