In a report, the think-tank stated that encouraging consumers to generate their own energy “is ultimately the best way to increase consumers’ power in the energy market”.
Authors Tony Dolphin and Amna Silim stated that the notion of consumers “as mere price-takers at the bottom of the supply chain” no longer applies because of the “rapid development of technology”.
They added that consumers are now able to generate their own power, as well as offer demand reduction services, giving them more control over the energy demand and consumption.
The report said that “reformers would do better to focus on encouraging these developments” than to try and create a competitive market, which is unlikely to fully succeed “given the experience of the last 12 years”.
They added that “attempts to create a competitive market in retail energy seem to have failed”, and the authors warned that reforms to the market, such as limiting the number of tariffs might “lead to less competition” and therefore limit the competitive “downward pressure” on energy bills.