Ofgem is seeking views on how to measure innovation in retail energy markets as part of its Call for Input on sector-health indicators, which closes on 7 April 2026.
In our latest special bulletin, we explore what meaningful measures of retail innovation could look like in a rapidly evolving energy system.
As households adopt new technologies such as EVs, heat pumps and batteries, and as digital tools reshape how consumers interact with energy, retail markets are becoming more dynamic and complex. This raises important questions about how innovation should be assessed and what it should deliver.
We argue that the focus should be on outcomes rather than simply counting new products. In particular, indicators should capture whether retail markets are supporting system flexibility, enabling the wider energy transition, and reaching a broad range of consumers.
The bulletin also highlights the importance of looking at both the availability of innovative offers and their adoption, and suggests that such metrics are likely to be more useful as diagnostic tools than as hard targets.
Frontier regularly works on similar topics for public and private clients, bringing economic insight to the design and assessment of energy market frameworks.
Author
Director
Senior Principal
02 April 2026
