The House of Lords Industry and Regulators Committee today launches its first inquiry which will investigate the role of Ofgem, the UK’s energy market regulator.
Ofgem oversees the UK energy market, which will play a key role in the UK’s transition to net zero emissions by 2050.
The Committee will scrutinise Ofgem’s role in the wider energy system and its relationship with Government and Parliament, how Ofgem’s regulation interacts with net zero transition, and how net zero impacts Ofgem’s other objectives, including affordability and a secure energy supply.
The Committee invites evidence on a number of issues including:
- Ofgem’s role in the wider energy system
- Ofgem’s statutory objectives, duties and powers
- Ofgem’s relationship with Government and Parliament
- the impact of Ofgem’s environmental objectives on the cost of energy, particularly for consumers
- the security of the UK’s energy supply during the net zero transition.
Lord Hollick, Chair of the Committee, said: “This inquiry kickstarts the Committee’s scrutiny of the UK’s regulators. Ofgem regulates the UK’s electricity and gas markets, giving it a key role in overseeing a sector that is crucial to meeting the UK’s net zero target.
“The target is likely to lead to an even greater role for electricity in sectors such as heating and transport, increasing demand and potentially putting greater pressure on Ofgem to provide reliable, green energy without an unaffordable increase in energy prices.
“The inquiry will look at Ofgem’s role in the net zero transition, scrutinising its regulation in relation to the target and the potential impacts on energy consumers and the wider energy system.
“The inquiry will also consider what the net zero target means for Ofgem’s responsibilities across a broad range of issues, including a secure energy supply, affordability and customer protection, particularly for vulnerable customers. The inquiry will look at Ofgem’s duties and powers and its relationship with the Government, aiming to ensure that Ofgem has clear objectives and the powers to meet them.
“The Committee wants to hear from a broad range of people as part of its inquiry. If you have a view on Ofgem, or energy regulation more widely, please look at our Call for Evidence and let us know what you think.”
On Tuesday 29 June, the Committee will hear from energy experts in the second public meeting of the inquiry, having already heard from academics. Watch the session live on Parliament TV from 10.15am.