RECCo responds to relevant industry consultations to help shape the direction of the retail market. This section of the newsletter provides a high-level overview of our recent responses led by our Strategy and Development team.
RECCo responded to Ofgem’s draft Forward Work Plan (FWP) on 28th February. While the FWP is extensive and the activities are very much needed, we highlighted the need for Ofgem’s work to be prioritised and focused in the right areas at the right time and to ensure a joined-up approach. Read our full response here.
The RECCo strategy team are in the process of updating the strategy and forward work plan with amendments which are in response to the feedback we received. The changes include wording amendments to better clarify our plans, and do not include any budgetary or material changes. We will be publishing the document in early April on the RECCo website and providing regular updates with our stakeholders on progress across the relevant workstreams.
We also noted that the market of the future should be encouraged to develop, using existing structures to drive transitional change to the ‘new world’ of agility, flexibility, and a smart low-carbon market.
Finally, it is important that Ofgem’s work sets the right balance at the right times between providing regulatory boundaries versus allowing innovation to evolve. This involves encouraging investment into some of the most challenging areas to help address some of the challenges appearing as part of the transition. Fundamentally, it requires acknowledgment that a future retail energy market participant may not behave like a current licensed energy Supplier.
Find our responses to relevant industry consultations on our dedicated webpage.
The International Energy Agency (IEA) published a 10-point plan to reduce the EU's reliance on Russian natural gas on 3rd March. While the progress toward net zero will likely reduce gas usage, actions are required in the meantime to enhance near-term resilience of the gas network. Suggested measures include encouraging a temporary thermostat adjustment of 1 degree by consumers.
The End Fuel Poverty Coalition (EFPC) - which consists of over 50 charities, campaigners, local authorities, and other organisations have called on government to cut energy bills for the most vulnerable households. They advise that 8.5m UK households could be unable to heat and power their homes.
Ofgem published a guide to EV Charging regulations, particularly focusing on the different scenarios/models and how the current regulations apply.
On 4th March, the House of Lords Industry and Regulator’s committee published a report ‘The net zero transformation: delivery, regulation and the consumer’. The report finds that there is a gap between the ambitious net zero targets and the investment required to achieve the targets. It also suggests that the power system should be decarbonised by 2035 in order to meet the 2050 target.
