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This consultation seeks views on a proposal to raise the customer account threshold for supplier involvement in the Carbon Emissions Reduction Target (CERT), Community Energy Saving Programme (CESP) and Feed-in Tariffs (FITs) from 50,000 to 100,000. Government is also proposing the Warm Home Discount, which is the subject of a parallel consultation, should also apply a 100,000 customer accounts threshold.
The aim of this proposal is to reduce a potential barrier to growth for small energy suppliers. Market entry and the threat of market entry are important in energy markets, as in other markets, to promote competition. Competitive markets are in the interests of consumers, since competition incentivises firms to innovate to reduce prices and improve the products and services they offer. It is also hoped a higher threshold will reduce burdens on small suppliers, in line with the Government’s broader burden-reduction agenda.
The consultation also seeks general comments on how DECC can design future supplier obligations in a way that minimises disproportionate impacts on smaller suppliers and overall burdens on suppliers.
This consultation is accompanied by an impact assessment.
A response form is also available.