20 Apr Changes to Energy Bill will ensure energy regulator is committed to net zero
During recent discussions of the Energy Security Bill in the House of Lords, an amendment was passed, giving Ofgem a statutory obligation to support achieving net zero. The proposed changes regarding Ofgem’s governing body, the Gas and Electricity Markets Authority (GEMA), with general duties associated with climate change would provide Ofgem with a net zero mandate.
A representative of Ofgem explained that their duty is protecting the interests of existing and future customers and ensuring sustainable development of the energy industry is consistent with the intended net-zero mandate.
The changes follow the UK energy trade associations voicing their concerns over the level of power that Ofgem has to deliver net zero and has received a warm welcome from several members of the energy industry. Nathan Bennett, the head of public affairs at RenewableUK, explains that reforming Ofgem’s mandate to focus on applying net zero to every decision is long overdue. Bennett believes it is a positive move and highlights that the House of Lords has listened to concerns within the energy industry and hopes that MPs will back plans when the Energy Bill returns to the Commons in the coming weeks.
The proposed changes would empower Ofgem to accelerate the pace and the scale of investment in new grid infrastructure, enabling the development of additional wind, solar and tidal stream projects. Some wind sites are prevented from development for over ten years before securing connections. This reform would allow us to develop a resilient grid well-suited for our future.
Adapting Ofgem’s mandate to drive forward with the UK’s plans to move toward clean energy is in the interest of billpayers, as renewable energy projects represent our cheapest power source, reducing energy bills and strengthening domestic energy security.
Lawrence Slade, the CEO of the Energy Networks Association, highlighted that the latest vote in the Lords reinforced the general industry view that we must have a regulator directly connected with a net zero future. As we develop the energy system of the future, we all must come together and work in the same direction to secure the extent of investment required in all industries, from heat pumps to turbines and hydrogen.
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