A group of large industry representatives have called on the government to incentivise energy network companies to become more flexible.
In an open letter to the Minister for Energy and Growth Claire Perry MP, the group, which includes OVO Energy and Solar Trade Association, calls for the Department for Business, Energy and Industrial Strategy (BEIS) to work with Ofgem to ensure network companies are encouraged to deliver better utilisation of the electricity grid.
The group have urged Ofgem to make their proposals central to the RIIO-2 price control mechanism currently under consultation.
They say the incentive structures electricity network companies usually operate under are not aligned to achieving a smart and flexible energy system and suggest they need to be more flexible to ensure a renewable future, decarbonise heat and transport, keep energy costs low and stabilise the grid.
Toby Ferenczi, Director of Strategy at OVO Energy, said: “OVO has long advocated the value of flexibility services in the energy system of the future.
“By implementing a ‘flexibility first’ approach, Ofgem and the government can play a major role in helping the transition to a smart, flexible energy system that will not only enable deep decarbonisation of our society but also represents significantly better value overall for consumers.”
A BEIS spokesperson said: “We’re making clean growth a reality, with record levels of energy generated from renewable sources, emissions cut by 40% since 1990 and investment in the sector more than doubling over the last five years.
“We share industry’s ambition for flexible networks and are working with them to develop a more smart and flexible energy system that meets customer demands.”