Ofgem sets out planned pathway for UK decarbonisation

The energy regulator has set out a series of actions to take in order to ensure energy networks are ready to support the transition to a clean economy

Ofgem has launched a new Decarbonisation Action Plan to ensure energy networks are ready to deliver net zero.

The energy regulator has set out a series of actions to take in order to support the government to work out how best to decarbonise heat and transport and encourage low carbon innovation among businesses.

It stresses the cost of a low carbon energy system must be fairly spread between existing and future customers.

The commitments outlined in the plan include building adaptability into its price controls to ensure network companies invest efficiently and can adapt to new technologies, setting up a regulatory fund to unlock investment in innovative climate solutions and coordinating the “rapid expansion” of an offshore energy grid as affordably as possible.

It also pledges to harness its existing knowledge and expertise to help develop cost-effective and low-risk ways to decarbonise heating, ensure energy system management is conducive to a net-zero future, bolster flexibility and develop a regulatory strategy on electric vehicles (EVs) to accelerate adoption.

Additionally, the plan will support the creation of new low carbon products and services and Ofgem will respond to the need “to take big decisions” by becoming more adaptive.

CEO Jonathan Brearley said: “Britain has come a long way. It has decarbonised faster than any other major economy but we must go further, particularly on heat and transport. We are taking an approach that recognises that our role protecting consumers includes achieving net zero.

“It is now vital that the energy industry rises to the challenge and demonstrates how it will work with the government and Ofgem to decarbonise Britain’s energy system at lowest cost.”

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