Energy regulator Ofgem has set out its vision to 2023 and claims the objectives and priorities within it are designed to "protect the interests of existing and future consumers" in a rapidly changing energy sector.
The strategic narrative published today (11 July) covers the period until 2023, when the price cap on default tariffs is due to expire and all networks are subject to RIIO2, Ofgem's next price control.
The strategy document sets out Ofgem's three key objectives to guide its approach over this period. This includes a key objective to help decarbonise the economy at the lowest cost to consumers after Parliament passed legislation last month enshrining in law the target of net zero carbon emissions for the UK by 2050.
Consumers and stakeholders should expect Ofgem to:
- Enable competition and innovation which drive down prices and result in new products and services
- Protect consumers, especially the vulnerable, stamping out sharp practice and ensuring fair treatment
- Decarbonise to deliver a net zero economy at the lowest costs to consumers.
Martin Cave, the chair of Ofgem, said: "We are witnessing exciting and rapid changes in the energy system while the way consumers interact with the energy market is changing too.
"The strategic narrative will guide stakeholders on Ofgem's planned approach to the coming opportunities and challenges over the next four years to ensure that consumer interests remain protected today and tomorrow.
"Ofgem, working with Government and stakeholders, is determined to help decarbonise energy use at the lowest cost to consumers, to unlock the benefits of competition and innovation and will ensure no consumers, especially the vulnerable, are left behind."
Ofgem has also committed to developing a more efficient, agile way of working to allow the regulator to respond more quickly and effectively to the fast-changing energy sector. The regulator says this will allow it to quickly adapt its strategy to external events.
Ofgem will publish more detailed guidance in due course on how this strategy document and its priorities for this period will drive the organisation and its Forward Work Programme, which covers the next two years and is updated annually.