Launched in Parliament on the 11th of December this report helps to untangle the ‘spaghetti of regulation’ that currently exists for the energy sector and return the UK to the forefront of regulatory innovation.
A decarbonised, decentralised and digitalised energy system does not fit into the current regulatory framework. The authors propose we need to ‘re-engineer the system’ and to do this requires a ‘fundamental rethink of the market design, starting at the plug’.
BEAMA agree doing nothing is not an option. We will miss out on opportunities for innovation and the UK will be ill-equipped to regulate and manage an increasingly complex system to ensure consumers are protected.
Over recent years BEAMA has witnessed the UK leading the way globally in demonstrating reform in regulation through the RIIO price control, which has succeeded in driving a lot of innovation in our industry. Now we need to take the next step, a more radical progression, but it will continue to define the UK at the cutting edge of energy system design and open market opportunities for UK industry.
BEAMA CEO, Dr Howard Porter states - ‘BEAMA strongly believe radically reforming the regulatory system for energy would help demarcate the UK as a global leader’.
In short, the paper recommends the following:
- Change what we regulate
- Change how we regulate
- Protect and serve consumers better
- Open up to retailers
- Optimise the system
- Get more from less
There is a lot of work already on going to help elevate the recommendations set out in this report. Including the timely launch of the BEIS and Ofgem Energy Data Task Force which is fully supported by BEAMA.
Perhaps most importantly is the need to bring the consumer to the center of the market. There is significant opportunity to offer consumers more affordable, competitive energy services and enable them to utilise low carbon, efficient systems. And when we say competition we mean choice…. choice of tailored service propositions that fit their building type, location, and energy use pattern.
BEAMA are keen to continue our work with the sponsors of this report to elevate the importance of this agenda. Will 2019 be the turning point for the future of our energy industry and innovation in demand side services? We will leave you with a quote from the report:
‘Energy Regulation is facing of the most important periods since privatisation, with the opportunity to re-shape regulation from being ‘of’ the sector to being ‘for’ the consumer’.
Notes to Editors:
http://www.challenging-ideas.com/wp-content/uploads/2018/12/ReDESIGNING_REGULATION-final-report.pdf : is authored by Laura Sandys, Professor Richard green, Dr Jeff hardy and Dr Aidan Rhodes
The report has been funded by a range of industry organisations – BEAMA, Energy Systems Catapult, ESB, Energy UK, Gemserv, Octopus Energy, Ofgem, RES, Resolver, TechUK, UK Power Networks and Western Power Distribution
Further reading and supporting material:
BEAMA Electrification by Design Series http://www.beama.org.uk/electrification-by-design-series.html