Ofgem welcomes proposed legal mandate on 2050 net-zero
Ofgem has welcomed the Government’s amendment to the Energy Bill giving the regulator a statutory net zero duty, it has said.
The news means a specific net-zero duty has been added alongside the regulator’s Ofgem’s principal objective to protect the interests of existing and future gas and electricity consumers.
To date, the regulator has a general statutory duty to protect existing and future consumers’ interests by the reduction of greenhouse gases emissions in electricity and gas supply. But the Energy Bill amendment will replace greenhouse gas emission wording with a specific reference to the Climate Change Act 2008 and net-zero.
It gives Ofgem a specific net-zero mandate to protect existing and future consumers’ interests by supporting “the Secretary of State’s compliance with the duties 1 and 4(1)(b) of the Climate Change Act 2008 (2050 net zero target and five-year carbon budgets)”.
This will require Ofgem to apply and document this in decision-making. The new duty will come into force two months after the Energy Bill gets Royal Assent, it said.
Ofgem CEO Jonathan Brearley said: “Our fundamental objective will always be to protect the interests of existing and future consumers. It is at the heart of everything we do. Ofgem welcomes this mandate which brings us in line with the UK Government’s legal obligations and, for the first time, directly links consumers’ interests to specific net zero targets
“We’re clear consumers are best protected by building a low-carbon, low-cost energy system, scaling up long-term investment and stabilising prices with clean energy. The mandate sends a clear message we must end our historic dependency on fossil fuels and stop our exposure to volatile global markets.
“We’re laying the foundations for the energy system of the future. The net zero mandate has overwhelming backing from every part of the energy industry, consumer campaigners and climate activists. It underlines net zero is the best option, not only from a climate perspective, but to ensure a secure, low-cost energy future.”
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