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Ofgem consults on proposed recovery mechanism for FSO transition costs

On Wednesday 21 June, Ofgem published a consultation on funding the transition to the Future System Operator (FSO). The consultation is seeking views on Ofgem’s funding proposals for cost recovery mechanisms that will allow for the Electricity System Operator (ESO), National Grid (NG) and National Gas Transmission (NGT) to recover efficient and economic costs incurred from activities related to the transition to the FSO.

UK Parliament buildings.

Decarbonisation hindered by lack of overarching delivery plan, says PAC

The Public Accounts Committee (PAC) announced on Wednesday 21 June that it has published a report on Decarbonising the power sector. This highlights that while the government has many separate ongoing power decarbonisation plans, its ambitions for power sector decarbonisation by 2035 are jeopardised by the lack of an overarching delivery plan.

Consultancy

Citizens Advice explores implications of locational pricing

On Wednesday 14 June, Citizens Advice published a report, It’s all about location – Will changing the way we price electricity deliver for consumers?, which reflects on the case for implementing locational pricing as a way to reform the current electricity market, and the risks that are to be considered if this pricing method is to be incorporated.

Parliament Regulation

Government proposes legal net zero mandate for Ofgem

As part of the ongoing Energy Bill process, on Tuesday 6 June, the government issued guidance detailing a proposal to amend the existing duties of the Gas and Electricity Markets Authority (Ofgem) in order to provide it with a specific net zero duty which they will have regard to when carrying out their duties.