Supply licensee governance arrangements guidance

Supply licensee governance arrangements guidance | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Supply licensee governance arrangements guidance Publication type: Consultation Publication date: 1 January 2025 Last updated: 20 November 2025 Closed date: 25 April 2025 Status: Closed (with decision) Topic: Financial resilience, Electricity supply, Gas supply Show all updates Print this page Related links Consumer confidence: a step up in standards Decision on strengthening milestone assessments and additional reporting requirements Decision on operational changes to Renewables Obligation and Customer Credit Balance Ringfencing guidance and templates Share the page Share on Facebook Share on Twitter Share on LinkedIn Outcome of our consultation seeking views on our proposal to strengthen guidance for supply licensee governance arrangements. Details of outcome The guidance focused on board effectiveness, transparency, included example scenarios and would be introduced under the Operational Capability Principle and Milestone Assessment guidance. Following stakeholder feedback, we have decided to proceed with the guidance. We have taken a proportional approach offering flexibility, recognising that supply licensees of varying sizes and maturity have differing governance models and a one size fits all approach is not appropriate. This guidance is designed to support supply licensees in reviewing and strengthening governance arrangements in a way that enables responsible growth and delivers better outcomes for consumers. Milestone Assessment guidance Operational Capability and Financial Responsibility Principles guidance Read the full outcome Decision: Guidance on Supply Licensee Governance Arrangements [PDF, 193.88KB] Supply licensee governance arrangements guidance consultation responses [ZIP, 2.51MB] Original consultation We are consulting on new guidance to strengthen supply licensee governance arrangements. Following the guidance will help to build greater financial resilience in the sector. We want to ensure energy supply licensees have effective governing bodies through mechanisms such as: independent oversight conflict of interest management providing transparency of their governance arrangements These proposals aim to support better decision making across the market. Your views will help us determine the best way to proceed. Consultation documents Guidance on Supply Licensee Governance Arrangements [PDF, 257.97KB] Annex 1 - Guidance on the Operational Capability and Financial Responsibility Principles [PDF, 513.26KB] Annex 2 - Milestone Assessment Guidance [PDF, 168.75KB] Print this page Related links Consumer confidence: a step up in standards Decision on strengthening milestone assessments and additional reporting requirements Decision on operational changes to Renewables Obligation and Customer Credit Balance Ringfencing guidance and templates Share the page Share on Facebook Share on Twitter Share on LinkedIn All updates 20 November 2025 added outcome of consultation and links to updated guidance. Close