Ofgem proposes reforms to ensure net zero by 2050 target is met

Article summary

Ofgem has published a discussion paper which outlines a range of options for ensuring that the government’s net zero targets are met at the lowest cost to customers. The two key areas of reform identified are the strategic planning for the energy system by a new independent Future System Operator at a national level and a potentially similar model at a local level, or potential reforms to the electricity wholesale market, which would involve the price setting potential of natural gas being limited and using pricing signals, such as moving from setting wholesale electricity prices at a national level to either a regional or local level, to run the system more efficiently. Ofgem believes that these reforms could deliver up to £10bn of savings to customers each year. A proposed framework for consumer interests is also included in the paper, and Ofgem confirmed it will work with consumer groups and other stakeholders...