This week saw the publication of ReDesigning Regulation - Powering from the Future. Authored by Laura Sandys, Dr Jeff Hardy, Professor Richard Green and Dr Aidan Rhodes it is a follow-up to the ReShaping Regulation paper published last year. This report proposes a series of regulatory actions that are needed to successfully manage the revolution that the energy system is undergoing and embrace a new market structure and design that is fit for the future.
The report seeks to bust myths about the provision of electricity and explores the characteristics of the system that are either driven by physics, economics or the regulatory structure. At the same time the report sets out the key drivers of new choices, cost base, asset clauses, roles, security and insecurities, players and skills.
If we are to capture the decarbonisation dividend that these drivers bring then the report is clear that the current structure will fail to capture the innovation driven and multi-vector world of the future. To do so requires what the author's call the normalisation of the electricity sector. To do so they recommend:
• Change what we regulate: normalise electricity through redesigning the market
• Change how we regulate: change from regulating process to regulating for risk
• Protect and serve consumers better: create one essential service consumer regulator
• Open up to retailers: risk assure retailers rather than license suppliers
• Optimise the system: opening up system data for the public good
• Get more from less: redefine and recalibrate security of supply
techUK has been pleased to support both reports through engagement with members and we look forward to engaging with the sector on the issues that it raises.