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:
- Do you have any views on the strategic issues we will face in the development of the
next price control review process?
- Do you have any views on the case for change we have outlined?
- 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?
- 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.