Ofgem has made fresh calls for technology companies to disclose the barriers they face in entering the energy retail market ahead of the deadline for its consultation on innovation in the industry.

The consultation, which closes on 27 November, aims to support the development of new innovative products and services to help lower energy bills and deliver a low-cost transition to net-zero by understanding the obstacles for tech firms and other innovators in the market.

The energy regulator’s deputy director of future retail markets Jemma Baker said that market entry relies on data, technology, commercial, consumer trust and engagement, adding that Ofgem wants to work with the sector to reduce these barriers “wherever possible”.

Current innovations in the energy market span everything from home management systems that integrate smart applications, including smart electric vehicle charges and rooftop solar, to the growing concept of "zero-bill homes" whereby eligible customers using green technology could eventually have energy bills that cost nothing.

“We don’t want unnecessary or outdated regulations holding back the best and boldest ideas for our energy system, and we’re taking steps to make that happen,” Baker told Retail Systems.

The comments come as Ofgem continues to invest in the Strategic Innovation Fund (SIF), launched in 2021, to develop projects that focus on finding greener ways to travel and heat and power homes and businesses.

Ofgem expects to have invested a total of £450 million via the fund by 2028.

The organisation has also proposed a set of options which would provide more flexible licensing in a bid to boost the products and services available to customers by “clearing the way for quicker market entry”.

“The ask now is for those responsible for bringing new innovations to market to reach out and help inform the regulations that will make that happen,” continued Baker. “No one entity can drive this transformation alone. We want to work with energy suppliers, tech innovators and consumers to create an ecosystem where innovation can flourish to the benefit of all, including the most vulnerable.

"The work we are kicking off will give these stakeholders the opportunity to have their say and make that happen.”

---