Energy Supply Licence Regime ‘no longer fit for purpose’ says The Taskforce on Innovation, Growth and Regulatory Reform

The task force set up by Prime Minister Boris Johnson into how the UK should reform following Brexit has said that the current energy supply licence regime is no longer fit for purpose and has called for sweeping changes to the energy supply sector.

What is the Taskforce on Innovation, Growth and Regulatory Reform?

What could it mean for the energy sector?

The task force’s report says that the scale of the changes underway in the energy market requires fundamental reform of the regulatory framework created back in 1989 by the Electricity Act.

It also says that the role, remit, and responsibility of the energy regulator Ofgem, National Grid, its ESO arm and the energy companies themselves have all changed significantly and that a new regulatory framework is needed to ensure the sector is fit for the future.

The report offers no details or suggestions as to what this new framework would look like, but it is clear that the government will be looking to make changes to lead the way to create a smart energy grid and transform the UK’s energy infrastructure.

The task force also calls for modern regulation to support the Net Zero transition and the new energy businesses of the future.

“By taking steps now to support and build the grid of the future, the Government can foster innovation in a broad range of sectors, both within, and beyond energy. We must ensure that the regulators and the energy market can set the conditions to support the customers of the future, and the next generation of energy needs, by creating the regulatory frameworks for the energy systems of tomorrow, today,” said the report.

In a letter to the Taskforce, Prime Minister Boris Johnson said:

“Thank you so much for your work as the Taskforce on Innovation, Growth and Regulatory Reform (TIGRR).

I asked you to re-imagine, quickly and creatively, the UK’s approach to regulation and make the best use of our recently rediscovered freedoms. You have more than delivered on that charge, responding with substantive plans that will really put a TIGRR in the tank of British business.

It is obvious that the UK’s innovators and entrepreneurs can lead the world in the economy of the future, creating new opportunities and greater prosperity along the way, and levelling up our whole country in the process. But your report makes it equally clear that, whether in data reform or clinical trials, offshore wind or autonomous vehicles, this can only happen if we clear a path through the thicket of burdensome and restrictive regulation that has grown up around our industries over the past half-century.

The Government, through our Better Regulation Committee, is already hard at work on reform of the UK’s regulatory framework. Your bold proposals provide a valuable template for this, illustrating the sheer level of ambitious thinking needed to usher in a new golden age of growth and innovation right across the UK.

So we will give your report the detailed consideration it deserves, consult widely across industry and civil society, and publish a response as soon as is practicable.

Your report shows what a fully sovereign United Kingdom can achieve given sufficient ambition and vision on the part of its government. I look forward to drawing on your work in the months and years ahead as we build back better than ever before.

The Government will consider and respond to the report’s recommendations in due course.”

Whatever changes will occur Dyball Associates will be there to help support energy suppliers navigate any new regulations and help new energy supply businesses enter the market.

Dyball offers a range of software and services to help energy suppliers. These include:

• Energy Supplier & Energy Billing System
• Customer Self-service Portal
• Customer Switching Portal
• DCC Adapter
• Energy Managed Services

Looking to enter the UK energy market? Dyball Associates team of energy market consultants can guide you through the steps to get qualified and attain your gas or electricity licence.

Whether you’re looking for electricity and gas systems or support on starting an energy supply company, Dyball Associates can help. 

Further Reading

65% of domestic UK energy customers are now supplied by Green Energy Suppliers

Energy Supplier Customer Satisfaction fell to an all time low in Q1 2021 says Ofgem data

Dyball Associates are proud to help new supply businesses successfully launch in the UK market.

Through our energy market consultancy services, and the software we've developed, we're supporting new UK electricity and gas suppliers get set up and start supplying.

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