February 3rd was the first day in the office for Ofgem’s new Chief Executive Jonathan Brearley, and that’s when he launched the energy sector’s new Decarbonisation Action Plan. Highlighted in the Ofgem plan will include stronger regulations against “greenwashing” energy deals.
Ofgem has been under scrutiny in the past for having outdated statutory duties and not being in alignment with the government’s climate policies. Ofgem was originally set up to safeguard consumer interests, and regulate energy companies.
The Guardian reported last year about the CBI having concerns with the way Ofgem was handling their job duties and quoted a CBI spokesperson:
We believe that Ofgem should be supported with new statutory duties to enable prioritization of decisions that promote clean growth and progress towards net zero, alongside fair competition and value for money to consumers.
The nine-point action plan for a net-zero emissions future includes the following:
- Regulate network companies to invest efficiently to deliver clean affordable energy.
- Set up a fund to tackle climate change by supporting innovative solutions.
- Support the development of an offshore grid, which would enable a four-fold increase in offshore wind generation by 2030.
- Support the development of low carbon heating options.
- Review the management of the energy system.
- Encourage people to switch over to more sustainable everyday habits.
- Support an energy network that can power 10 million electric vehicles by 2030.
- Kick start innovation for low carbon products and services for consumers by energy suppliers.
- Become more adaptive to the changing environment, make fast decisions regarding regulations.
Brearley looks to help offset some of these past criticisms and address the problems others had:
We are taking an approach that recognizes that our role in protecting consumers includes achieving net-zero. As low-carbon renewable energy grows and more transport goes electric, the energy system needs to be more flexible to respond to peaks and troughs in both supply and demand. Our new price controls for network companies will clear the path for this, providing the incentives for investment for the future.
The decarbonization action plan states; “there will be significant changes to the way we heat our homes and businesses.” While it’s still unclear on the best way for them to achieve this, the advancements in hydrogen technology will almost certainly play a role.
These are the key actions that they plan to take over the next 18 months, and plan to report regularly on their progress.
It appears Ofgem will accept greater responsibility in reducing overall emissions by working together with industry leaders and the government to help achieve net-zero carbon emissions. It will now be up to the people to hold them to these standards along with making changes themselves to help save the environment from the global climate crisis we all face.
