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ESC calls for whole systems approach to energy network reform


Energy Systems Catapult (ESC) has published a response to Ofgem’s request for feedback on whether there is a strong case for reform to the current approach to regulatory frameworks for gas and electricity networks. Ofgem is seeking views on the following key questions:

  1. Do you have any views on the strategic issues we will face in the development of the
     next price control review process?
  2. Do you have any views on the case for change we have outlined?
  3. Do you have views on whether the changes to the electricity or gas sectors mean we should consider alternatives to the approach taken in the RIIO-2 price control?
  4. Are there any broad frameworks or options that you think we should consider, including variants and alternatives to those we set out?

ESC reiterated its recommendation for a whole systems approach to incentivise innovation to exploit synergies across the system and between energy vectors. It also called for wider strategic alignment with other complementary areas of reform – including with Climate Change Committee trajectories, as well as the emergence of the Future System Operator, local governance, planning consent, network tariffs / wholesale price signals, etc.

It also identified a need to bolster incentives for developing and disseminating new and improved approaches and technologies – including through retaining/strengthening the Strategic Innovation Fund and Network Innovation Allowance.

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