Select committee: Industry and Regulators Committee
Conclusion 22
1st Report - The net zero transformation: delivery, regulation and the consumer
Published 4 Mar 2022
Paragraph 191
Industry and Regulators Committee Ofgem and net zero All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
Without acceptance by consumers the transition will not be possible. They are set to be key participants, but need greater clarity, information and guidance in order to play their part and realise the benefits. The Government needs to take the lead in clearly setting out the need for consumers to take action and what it expects them to do—for example, with respect to heat pumps—as well as providing incentives to decarbonise energy use. This will allow Ofgem to set out its expectations for energy companies, and for those suppliers to adapt their offering to customers. Ofgem must ensure that energy suppliers do not disproportionately penalise those consumers unable to engage with the changing energy market.
From: Industry and Regulators Committee, 1st Report - The net zero transformation: delivery, regulation and the consumer, paragraph 191, 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".