- Distribution Network
- Generation and Wholesale Market
- Offshore Transmission Network
- Supply and Retail Market
- Transmission Network
Today the House of Lords Industry and Regulator’s committee published their report ‘The net zero transformation: delivery, regulation and the consumer’.
We welcome the report and the opportunity the committee gave us, and other stakeholders, to bring to the fore the urgent need to ensure greener, cleaner energy sources for future generations. Less reliance on gas as we diversify to renewable energies will better protect the industry, and so consumers, from the volatility of rising gas prices.
The unprecedented rise in gas and electricity prices has put energy markets under severe strain. Ofgem’s safety net has worked - it has protected more than four million customers, making sure that even when their supplier has failed they have an energy supplier and household credit balances are honoured. It is also clear the energy market was not resilient enough to cope with a shock of this magnitude and that our regulation needs to change.
That’s why Ofgem has moved at pace since the spike in prices to introduce a number of important reforms to ensure the energy sector is more resilient in future against potential continued global market volatility, and is able to deliver the transition to net zero in consumers’ interests. This includes reforms to make the price cap more flexible and adaptable, while still retaining the benefits of its protection for consumers.
Ofgem has played a key role in driving down carbon emissions over the last 20 years with its network regulation enabling a huge increase in renewable energy generation and through our administration of government environmental schemes. However, there is no doubt that meeting the government’s net zero targets at least cost to consumers is an enormous challenge. As Great Britain’s energy regulator, we are deeply committed to working with government and industry to help consumers make the changes needed and ensure the transition to net zero is affordable, fair and inclusive for all.
We will consider the Committee’s report closely over the weeks ahead and respond to the Committee more formally in due course.