The UK Government has published guidance regarding Ofgem‘s net zero duty.
The Energy Security Bill, which was recently introduced, includes a provision related to the regulator’s net zero role.
This means that Ofgem, the regulator for the gas and electricity markets, will now have to consider how its decisions can help the government achieve its net zero targets.
The amendment to Ofgem’s duties clarifies its role in supporting the government’s net zero targets as defined in the Climate Change Act 2008 – it specifically applies to the Gas Act 1986 and Electricity Act 1989.
The government’s decision to update Ofgem’s duties reinforces the importance of the net zero targets and carbon budgets outlined in the Climate Change Act 2008.
It aims to align Ofgem’s decision-making process with the government’s net zero ambitions, ensuring a coordinated approach.
It builds upon Ofgem’s existing duty to consider the reduction of greenhouse gases.
The primary objective of Ofgem is to protect the interests of both current and future consumers -this includes their interests in reducing greenhouse gas emissions.
Responding to the announcement, Responding, Morag Watson, Director of Policy at Scottish Renewables, said: “For too long Ofgem’s remit has been past its sell-by date. Today’s decision remedies that position and ensures that the energy industry’s regulator is able to recommend more than just short-sighted changes to the system.
“The energy networks we have today were designed more than half a century ago when most of our energy came from fossil fuels burned near cities.
“Today we need clean, affordable power which delivers economic and environmental benefits to the whole country – and a regulator which is allowed to deliver an energy system to support that goal.
“This announcement is a huge step forward for energy’s place in net zero and we look forward to working with both government and Ofgem to ensure it delivers the maximum possible benefits for Scotland and the UK.”
Greenpeace UK’s Policy Director Doug Parr said: “We’re glad that the government has seen sense on this. Ensuring the UK’s energy regulator has a legal requirement to help meet our emissions targets is critical to getting more renewables into our energy mix.
“The challenge now is to make sure this infrastructure is built quickly and cleverly so that community disturbance is minimal, while fully connecting our world-leading offshore wind sector so we can drive down the cost of energy and our emissions.”
