British energy regulator Ofgem should include a net zero objective as part of its remit, according to the boss of a major UK energy company.
In a letter written by Emma Pinchbeck, chief executive of Energy UK, together with Baroness Hayman, co-chair of Peers for the Planet, Ofgem is becoming the “de facto UK regulator” for net zero.
Such a commitment would match those that already have been made by financial regulators; since 2021, the transition to net zero has been included in Prudential Regulation Committee and Financial Conduct Authority remits, the two insiders wrote.
The latest recommendation to include a specific net zero objective as part of Ofgem’s remit follows previous calls by the Climate Change Committee (CCC), the National Infrastructure Commission, the review by Chris Skidmore, Downing Street’s net zero tsar, and the House of Lords industry and regulators committee.
According to the letter, in his evidence to the Lords, Ofgem’s chief executive Jonathan Brearley also stated that he can see benefits in defining a net zero duty for Ofgem in statute.
The letter stated: “Government has the opportunity as the energy bill goes through the Lords to listen, change its stance and amend Ofgem’s statutory responsibilities. In the interest of both present and future consumers, we need an empowered regulator with a clear duty to secure the net zero energy system.”
Last month, the Energy Networks Association also called on Ofgem to adopt a net zero mandate.
