Tuesday 22 August 2023

US Chamber of Commerce: Ofgem’s role needs clarity and flexibility

US Chamber of Commerce: Ofgem’s role needs clarity and flexibility

Amid the review of the UK's Energy Policy Strategy, attention is directed towards Ofgem, tasked with guiding the transition towards cleaner energy sources and innovative technologies.

In a formal response to a consultation, the US Chamber of Commerce, representing a diverse array of businesses, has raised important points regarding Ofgem's role in the government's energy priorities.

While recognising the strides taken in the strategy, the chamber has emphasised the need for clarity and flexibility in Ofgem's responsibilities.

The chamber suggests bolstering Ofgem's capabilities with regulatory flexibility, enabling the regulator to swiftly adapt to evolving market dynamics and technological advancements.

This approach, they believe, will facilitate adaptable policymaking while upholding the overarching energy policy goals.

The proposed flexible regulatory framework would empower Ofgem to find an equilibrium between promoting competition, safeguarding consumer interests, and advancing the shift towards cleaner energy sources.

A key point of the consultation has been emissions reduction and the integration of hydrogen as a cleaner energy source.

The strategy outlines a roadmap for building and strengthening essential hydrogen infrastructure, underlining its potential as a low-carbon solution.

However, the chamber's response suggests a broader approach - they advocate for a colour-neutral stance on hydrogen, aligning with a holistic focus on emissions reduction rather than emphasising specific technologies.

Written by

Bruna Pinhoni

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