Small players in UK energy see red tape cut

British officials are lifting some regulatory requirements on smaller gas and electricity companies to encourage growth and innovation in the UK energy markets.

The move frees firms with 250,000 or fewer customers from having to comply with the government’s Carbon Emissions Reduction Target (CERT) and the Community Energy Saving Programme (CESP). Previously, exemptions were granted only to firms with fewer than 50,000 customers.

“Currently, over 99 percent of people get their energy from just six big companies,” said Energy Minister Charles Hendry. “Reducing red tape for smaller suppliers will help them grow and encourage new players into the market. Increased competition can help bring down prices and encourage innovation, benefitting energy consumers.”

Both CERT and CESP are scheduled to apply through the end of 2012. Officials at the Department of Energy and Climate Change say they are looking at how to redesign both programmes to reduce burdens on energy suppliers of all sizes.

“It’s vital that we improve energy efficiency without placing disproportionate costs on small suppliers,” Hendry said. “We have listened to small suppliers, studied the evidence and gone further than our initial proposals, to give competition a bigger boost.”