We have published our response to Ofgem’s consultation on the future of local energy institutions and governance.
In our response, we express agreement with Ofgem’s stance on assigning key energy system functions to institutions with the competence, appropriate skill set and incentives to drive net zero at least cost. In particular, we welcomed Ofgem’s proposal to allocate the Future System Operator (FSO) as the Regional System Planner (RSP), recognising the value of a single entity delivering both national and local energy system plans while including various actors and taking a whole systems view. While we strongly supported Ofgem’s proposals to introduce a single, neutral expert entity to take on a central market facilitation role, we offered a few considerations. We emphasised that when assessing potential candidates for the role, Ofgem should consider the timeliness and magnitude of changes required for each of the proposed options. The sooner governance arrangements are in place, the sooner Ofgem’s end vision and benefits can be realised.