## Supplier Licensing Review - Stakeholder Workshop Housekeeping

| Time                                         | Agenda Item                                                                            |
|----------------------------------------------|----------------------------------------------------------------------------------------|
| 10 - 10.30                                   |                                                                                        |
| -                                            |                                                                                        |
| Introduction                                 |                                                                                        |
| -                                            |                                                                                        |
| Problem we are aiming to solve               |                                                                                        |
| -                                            |                                                                                        |
| Aims of the day                              |                                                                                        |
| 10.30 - 11.05                                | Table discussion                                                                       |
| 11.05-11.20                                  | Facilitator Feedback                                                                   |
| Tea & Coffee 11.20 - 11.35                   |                                                                                        |
| 11.45 - 12.00                                | Introduction to policy options                                                         |
| 12.00-12.30                                  | Q&A                                                                                    |
| 12.30-13.00                                  | Live poll                                                                              |
| Lunch 13.00-13.50 (feedback/comment boards ) |                                                                                        |
| 13.50 - 15.00                                |                                                                                        |
| Table discussion:                            | Participants to reflect on live poll results                                           |
| 15.00 - 15.30                                |                                                                                        |
| Design your own solution                     | : Stakeholders to design a solution of what they think is best reform package for SLR. |
| 15.30 - 16.00                                | Closing remarks/summary                                                                |

1. To encourage discussion that ensures our work packages are 
focused on the right areas to achieve the principles of Supplier 
Licensing Review.
2. Clarify questions and hear your views on the various options we 
are considering for our ongoing and exit packages.
3. Your opportunity to feed in your views to help inform our current 
thinking on the way forward for the Supplier Licensing Review.
•
Supplier failures that have led to increased costs to consumers
•
Poor customer service
•
Practical challenges in moving customers during 
a SoLR

## Supply Licensing Review - Core Principles

1. Suppliers should adopt effective risk management and be adequately prepared and resourced for growth, and 
bear an appropriate share of their own risk
2. Suppliers should maintain the capacity and capability to deliver a quality service to their customers, and foster 
an open/constructive dialogue with Ofgem
3. We maintain proportionate oversight of suppliers, and effective protections for consumers exist in the event of 
failure
4. Our licensing regime facilitates effective competition and enables innovation

Market Entry
Comes into effect Summer 2019
Ongoing requirements
Consult in Q3/Q4 2019
Resources New requirement to demonstrate appropriate knowledge, funding, awareness of risks & necessary capabilities
Promoting more responsible 
risk management Would require higher standards from suppliers relating to managing risk and growth
Readiness to comply with obligations New requirement to demonstrate awareness of key regulatory obligations & how the supplier intends to comply
More responsible governance and increased accountability Would look to incentivise and promote good conduct from 
those in senior management and 
other positions of influence Improved market oversight Would enhance Ofgem's oversight of the market and promote better standards via 
new reporting requirements

'Fit and proper' test More robust assessment of whether persons with significant management responsibility, directors, shareholders or influence are fit and proper to hold a licence

Exit arrangements
Consult in Q3/Q4 2019 
Improving efficiency and competitiveness of the SoLR process Would review the process for managing supplier failure and appointing a SoLR Improving the mechanisms to recover costs Would look to improve the experiences for customers of a failing supplier
Improving the SoLR 
experience for consumers
Aims to review the recovery mechanisms for SoLR 
related costs

•
Does our 'theories of harm' diagram reflect your understanding of the issues the Supplier Licensing Review is trying to address?
•
What parts of the current regulatory arrangements are not acting 
as effective mitigations for the issues we are seeing?
•
What do you think are the most pressing issues to be resolved?
•
In which 'stages' of the flow diagram should remedies be focused 
(ie supplier behaviours, business impacts, market impacts)

## Introduction To Policy Options Importance Of Recognising Interactions Between Different

Asking for views Prioritise a package from stakeholders of options to take on a long list of forward potential options Consult on and implement specific policy options

## Q&A

1. What are your top 3 priorities for Ofgem to deliver? 
2. What are the top 3 options you consider would deliver the 
most benefits if achieved?
3. What are the top 3 options you consider to be easy wins?

## Design Your Own Solution?

What is the optimum package of options you'd want from the Supply Licence Review?