Source · Select Committees · Business and Trade Committee
Recommendation 43
43
Deferred
Paragraph: 188
Prioritise enacting competition measures for onshore electricity networks within the Energy Bill.
Conclusion
There has been a clear lack of strategic planning and coordination of energy infrastructure and network upgrades. A failure to plan from a whole system perspective risks increasing the overall costs of the transition. We welcome the more strategic approach emerging following National Grid ESO’s Holistic Network Design and Ofgem’s Accelerated Strategic Transmission Investment (ASTI) framework. We also welcome measures included in the Energy Bill to enable competition in onshore electricity networks in Great Britain, which should be made a high priority by the Government and Ofgem once enacted.
Government Response Summary
The government will launch a Call for Evidence in summer 2023, followed by a consultation later in 2023, on how the energy retail market framework needs to evolve. This response focuses on retail market reforms rather than strategic planning of energy infrastructure or competition in onshore networks, which was the focus of the recommendation.
Paragraph Reference:
188
Government Response
Deferred
HM Government
Deferred
143. The energy retail market is the main interface between consumers and the energy system, and government recognises that it is a critical enabler of consumer choice and participation as the energy system decarbonises. As described in the March 2023 Energy Security Plan, the Government is pursuing targeted reforms to deliver an energy retail market that works better for consumers, is more resilient and investable, and supports the wider transformation of our energy system. As part of this, and reflecting the fact that specific features of the current retail regulatory framework may act as barriers to innovation, in summer 2023, the Government will launch a Call for Evidence on how the framework needs to evolve to support new ways of offering energy supply, before a consultation on options later in 2023.