In this consultation, Ofgem asked for views on the key projects that it intends to focus on during the 2025/26 financial year.
This consultation closed on Tuesday 11 February 2025.
A summary of our response
In our response, we agreed with the priorities Ofgem identified and called out specific observations around them. Ofgem identified its priorities as:
- Shaping a retail market that works for consumers
- Enabling infrastructure for Net Zero at pace
- Establishing an efficient, fair and flexible energy system
Elexon is committed to working and collaborating with Ofgem and all stakeholders to enable the government’s Clean Power 2030 objective, and we welcome Ofgem’s initiative to develop an integrated programme of work in 2026, bringing together the regulatory interventions required to meet it.
Key points from our response
Shaping a Retail Market that works for consumers
- Ofgem is focusing on two main areas in regulating retail markets: pricing protection and affordability for vulnerable consumers. We recognise that these areas are both important priorities. At the same time, we believe that a reform of the retail markets is also necessary to better stimulate innovation and consumer engagement.
- Unlocking the value of data is a key innovation for retail markets, which will bring further opportunities and changes to the system. At Elexon we are proud to play a pivotal role in enabling this transition and are committed to supporting the sector on improving the accessibility, discoverability, and interoperability of half-hourly data.
Enabling infrastructure for net zero at pace
- The pathway to Net Zero is still unclear, however there is not a single path for Clean Power without flexibility as a key driver.
- To avoid the risk of sunk costs for the system and consumers, we strongly recommend that in regulating price control for RIIO3, Ofgem maintains the emphasis on flexibility as a possible alternative to reinforcement.
Establishing an efficient, fair and flexible energy system
- We want to continue to work constructively with Ofgem and the industry to drive current and future initiatives that will support both the Flexibility Digital Infrastructure vision and the Government’s Clean Power 2030 Action Plan ambition, allowing flexibility to play a greater role in minimising consumer costs and maintaining security of supply at the lowest possible price.
- We recommend that Ofgem leverages the synergies between the market facilitator and other initiatives in the digital space aimed at removing barriers and standardising rules and technical arrangements.