Recommendation 23

The UK government aims to reduce greenhouse gas emissions to achieve net zero emissions by 2050.54 In April 2022, the Government set out its plans to reduce the UK’s vulnerability to international oil and gas prices, and accelerate the UK’s progress to net zero, by reducing the UK’s dependence on imported oil and gas and moving towards domestic sources of power, such as renewables.55 The Department told us that this shift was the longer-term underlying solution to challenges relating to energy security. Ofgem also told us that it wanted a retail market that could cope in a world where the country has more renewables and more energy storage, and where it was asking customers to buy and sell energy in different ways, such as flexing the times they use electricity to match times when demand is lowest.56 Overall Ofgem wanted to achieve: a fair price for energy for consumers; a resilient energy market; a low-cost transition to a net-zero; and an improvement in service standards for customers.57