- Government and Ofgem have launched a review into the rules that govern our energy system.
- The aim of the review is to develop options for improving the codes and their governance. The review will also look at how these changes can be made, including through legislation if necessary.
Many in industry are critical of the existing system of codes and code governance. There is a growing consensus that action is necessary in order to create a regulatory framework capable of delivering the transformative change.
Government and Ofgem are committed to ensuring that both our energy system and energy markets are capable of transition to a low carbon, smart and flexible future. Appropriate arrangements for the commercial and technical rules of the system form an important part of this.
The review will consider the rules underpinning the electricity and gas wholesale and retail markets, and the codes containing key networks rules. The Terms of Reference for the Review set out its scope and the outcomes it aims to achieve in more detail.
This review will work closely with ongoing policy developments coming out of the retail market and emerging recommendations from the Independent Data Taskforce, given the close interactions across these projects. We aim to consult on the changes to the existing arrangements by summer 2019. We will hold a series of stakeholder engagement workshops and webinars in early 2019.