Ofgem and the reduction of greenhouse gases


Ofgem and decarbonisation

Reference was made in the post of 27th July to a recent document from Ofgem, and to a response from Regen, which mentioned decarbonisation and network efficiency. There are relevant statements on Ofgem’s website at https://www.ofgem.gov.uk

Ofgem describes itself as follows:
“We are a non-ministerial government department and an independent National Regulatory Authority ….We are governed by the Gas and Electricity Markets Authority (GEMA)… Our principal objective when carrying out our functions is to protect the interests of existing and future electricity and gas consumers.”
“We recover our costs from the licensed companies we regulate. Licensees must pay an annual licence fee, which is set to cover our costs. We are wholly independent of the companies we regulate.”

In an appendix to an Electricity and Gas Supply Market Report dated 29 September 2010, Ofgem describes its powers and duties (appendix 5, section 1.4,  p.19)

"The Authority‘s principal objective is to protect the interests of existing and future consumers in relation to gas conveyed through pipes and electricity conveyed by distribution or transmission systems. The interests of such consumers are their interests taken as a whole, including their interests in the reduction of greenhouse gases and in the security of the supply of gas and electricity to them."

https://www.ofgem.gov.uk/ofgem-publications/38231/electricity-and-gas-supply-market-report-september-2010.pdf

The reference by Ofgem to “the reduction of greenhouse gases” would seem to support Regen’s argument that Ofgem, when considering network efficiency, should take into consideration the objective of decarbonising the UK energy supply.

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