We have published our response to Ofgem’s call for input on energy code governance reform.
Our response in summary
- We believe that the principles of code governance reform should be to reduce barriers to the energy transition by promoting delivery of affordability, security of supply and progress to Net Zero. All reform proposals should be tested against whether they will assist or hinder this pathway.
- Ofgem should look again at the costs and benefits of code consolidation. Now that Ofgem has confirmed that it wants to license code managers and direct them to deliver strategic change across markets, it could be argued that code consolidation is a secondary issue.
- It is important that the code manager licensing regime is proportionate, light-touch, and outcome-based.
- On Ofgem’s proposals for stakeholder advisory forums (to replace the current industry code panels), we believe the regulator still needs to re-evaluate and define the issues with the panels that it wants to resolve. It is of utmost importance for code managers to retain access to industry expertise while they developing their own expertise in house.