Select committee: Industry and Regulators Committee
Recommendation 12
1st Report - The net zero transformation: delivery, regulation and the consumer
Published 4 Mar 2022
Paragraph 88
Industry and Regulators Committee Ofgem and net zero All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
There is clearly a role for the Future System Operator in considering both the electricity and gas networks and providing greater planning of their future needs to ensure security of supply. We urge the Government to move promptly in establishing the Future System Operator and call for it to have clear objectives and responsibilities to avoid increasing complexity in the governance of the energy sector . Nonetheless, we believe that the Future System Operator should not have a wider role in co-ordinating the net zero transition; political trade-offs in this area should be decided by the Government.
From: Industry and Regulators Committee, 1st Report - The net zero transformation: delivery, regulation and the consumer, paragraph 88, 4 March 2022
Government response
The government responded to the whole report on 27 May 2022 (deadline 25 May 2022).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government sets out actions across the report's themes, declining to target a specific 2050 energy mix and to add a net zero duty for Ofgem, while agreeing with the committee on the retail market and consumer engagement.
- On a roadmap to net zero, it says the exact 2050 technology and energy mix "cannot be known now". It commits to a public update every year from 2022 on progress against the Net Zero Strategy pathway.
- On Ofgem, it says "A new duty is not necessary", stating that the duty to protect consumers' interests already includes reducing emissions in line with net zero. It has committed to consulting on a Strategy and Policy Statement for Ofgem "later this year".
- On a net zero taskforce, it states that "Our current governance arrangements are effective" and describes existing ministerial committees. It is creating a Future System Operator with objectives set out in primary legislation.
- On the energy retail market, it says "We agree with this view" on consumer engagement. It will refresh the retail market strategy, aiming to publish an update "as soon as possible, once the market has stabilised".