Ofgem has announced the medium-term objectives and priorities through which it plans to continue to “protect the interests of existing and future consumers” up to 2023.
The regulator has set out a ‘strategic narrative’ outlining how this will be achieved in a rapidly changing energy sector as the way energy is generated, used and purchased transforms and the nation moves to a low carbon, smarter and decentralised system.
Over the period up until 2023, it will work to enable competition and innovation to drive down prices and encourage new development, protect consumers by “stamping out sharp practice” and ensuring fair treatment.
Ofgem will also drive towards reaching decarbonisation at the lowest cost to consumers and work to become more agile, allowing it to respond and adapt more quickly to changes in policy and external effects.
Among these objectives it plans to develop a successor regime to the current default tariff price cap, conclude the RIIO2 price control in a way that benefits consumers and supports the work towards net zero and extend flexibility markets.
Other goals include developing a closer understanding of how regulation affects different groups of consumers;
and finding effective ways of deploying finance models for low carbon technologies.
Martin Cave, Chair of Ofgem, said: “We are witnessing exciting and rapid changes in the energy system while the way consumers interact with the energy market is changing too.
“Ofgem, working with Government and stakeholders, is determined to help decarbonise energy use at the lowest cost to consumers, to unlock the benefits of competition and innovation and will ensure no consumers, especially the vulnerable, are left behind.”