Reforming Ofgem should be first priority
Good Energy, the UK's only supplier of 100% renewable electricity and a pioneer in the renewable energy sector, has welcomed the creation of the new Department for Energy and Climate Change.
However, the company warned that the Government now needs to clearly define the role and remit of Ofgem, putting sustainability at the core of its work, to show it is taking energy and climate policy seriously and offering real choice for consumers.
Juliet Davenport, CEO and founder of Good Energy said: "We have been calling for energy and climate policy to be handled by a single Government department for over two years and welcome this announcement. Crossed-wires between DBERR & DEFRA have been hindering the development of an energy policy for a low carbon future. Bringing this together at cabinet level can only improve the UK's approach to climate change."
"Now, the new department's number one priority should be restructuring the role and remit of Ofgem in order to achieve wider renewable energy and climate goals."
Good Energy called on the new department to:
Formally place energy-efficiency and emissions-reduction at the heart of Ofgem's mission statement;
Give Ofgem the power and mandate to ensure network operators are preparing for and granting access to greater decentralised renewable energy generation;
Ensure that Ofgem designs and operates a system which helps achieve Government renewable energy targets, rather than working against them;
Ensure that Ofgem sees greater renewable generation as part of a long-term solution to relieving fuel poverty, so that the volatile price of carbon-based fuels does not set the agenda; and
That Ofgem works in conjunction with National Grid to enforce strong demand-side (demand-response) management programmes from all network operators as the quickest and most effective route to energy saving and emissions reduction from the power sector.
"The regulator is the agency which has most power over the energy sector in this country," Davenport added. "It needs serious reform over its remit and operations in order to help achieve wider goals, rather than the simple narrow focus on short term pricing. There are a number of long-term goals to aim for and we need a regulator with the vision to get us there. We should be thinking about the needs of the consumers of tomorrow, not just the problems of today."
Good Energy is the only 100% renewable electricity supplier in the UK. Unlike many other suppliers, Good Energy buys all of its electricity from renewables and uses no fossil fuels or nuclear power. By choosing 100% renewable electricity, individuals are cutting their personal carbon emissions and impact on Climate Change.