Source · Select Committees · Environmental Audit Committee
Recommendation 45
45
Acknowledged
Paragraph: 160
Optimal governance structure for distributed energy system and local authority engagement remains unclear
Conclusion
The electrification of the economy will lead to a more distributed energy system and will require local government engagement. While some efforts are underway to understand the potential for governance reform between national policy making and local policy making, the optimal governance structure involving national government, regulator, FSO and local authorities is currently unclear.
Government response summary AI-generated
The government agrees on the importance of appropriate governance and regulatory arrangements for NESO, detailing robust systems, Ofgem's oversight, strict board criteria, and a framework document outlining roles. These arrangements will be continually monitored.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
160
Government Response
Acknowledged
HM Government · verbatim extract
Acknowledged
Ofgem is responsible for setting the regulatory framework for NESO to deliver the Regional Energy Strategic Plan (RESP) and will provide enduring oversight and regulation of NESO’s delivery. Ofgem is currently in the policy design phase of the RESP and on 9 October closed its consultation on the framework for regional governance arrangements. The consultation proposes a Strategic Board in each region, comprising local and devolved government and network company representatives. These boards will facilitate transparency, heighten visibility of regional priorities and provide oversight of the RESP development, thereby providing appraisal of NESO in its role in regional energy system planning and ensuring value is added to regional network development. The RESP is expected to provide inputs to network companies’ business plans, which Ofgem will sign-off as part of the price control process, thereby representing a further appraisal mechanism. Ofgem have not set out plans for additional independent assessment of NESO’s role.
Read the full response on Parliament ↗