The Energy Policy Group (EPG) of the University of Exeter is pleased to give our comments on Ofgem’s RIIO2 Sector Specific Methodology (SSM). The EPG has previously given its comments on Ofgem’s RIIO Framework Consultation and has written various blogs pressing for more ambition with respect to RIIO2’s environmental output requirements. We have also argued that we find the RIIO regulatory separation from network charging to be destructive for whole system outcomes and cost effective competition. We think that the network charging regulatory process should be ended and incorporated within the RIIO process. Given the pace of innovation in energy systems, and the challenge of rapid decarbonisation to meet the Paris climate goals, IGov believes that there is a need for a shift in energy governance to steer a transformation to an integrated, socially just, zero-carbon energy system over the coming decades. With regard to Ofgem, there are two levels of change: First, there is much that Ofgem can do, given its existing duties and remit, to support this transformation. As we outline below, we do not think that the RIIO process as currently proposed will be sufficient to drive the necessary changes and support innovation in the sector. We recommend changes to the process and to the working practices of Ofgem, to move its practices into line with wider energy goals, particularly carbon reduction.
IGov 19th March 2019 read more »