Executive Summary
Ofgem has a vital role to play in the successful delivery of the energy transition, which should include fair and stable bills, whilst also protecting customers, particularly those in vulnerable circumstances. This vision of the energy market requires a targeted and proportionate approach to regulation, which would enable the investment and innovation that will help deliver the transition at lowest cost to customers.
On Ofgem’s proposed Forward Work Programme, Energy UK would note the following overarching points:
- There is little sign of Ofgem taking action to reduce the significant administrative burden of the sector.
- Ad-hoc interventions, often requesting responses in very short timeframes, increase administrative costs and divert resources away from innovation that would improve customer service.
- Systemic delays to licencing and code modifications have directly impacted investment and pushed up costs for customers.
Energy UK also holds the following practical concerns:
- More concrete information on the nature and timelines is needed on the projects outlined in the Foward Work Programme.
- It is unclear what framework Ofgem will use to prioritise the projects outlined in the Forward Work Programme.