Industry response to Ofgem's Targeted Review consultation
05 February 2019
6 UK Trade Associations highlight concern over Ofgem’s Targeted Charging Review
BEAMA co-signed a letter from industry to Secretary of State Greg Clark on the 4th of February calling for urgent action to better align Government ambition to decarbonise the energy system with Ofgem’s network charging reviews.
The associations – BEAMA, Renewable UK, Renewable Energy Association, Solar Trade Association, The Association for Decentralised Energy, and Tech UK – have collectively identified significant issues with the decision by Ofgem to fix residual charges before implementing reform to forward charges. The timing of these changes would result in a year or two with limited network benefits for flexibility and storage.
Dr Howard Porter, BEAMA CEO stated ‘this decision could significantly destabilise the renewables and storage market in the UK at a time when this sector needs a stable regulatory environment for continued investment. BEAMA are very concerned this could de-rail the UK storage market which we understand to be a huge growth opportunity for the UK. We are really keen to work with Government and Ofgem to better align these reforms and ensure they meet the UK’s objectives to decarbonise the energy system and support a market for flexibility.’
As an industry we support the need for a Significant Code Review and reform of the charging system can create positive change for the flexibility and renewables market. However, timing is key.