BSC Panel response to the consultation by the Government and Ofgem on energy code reforms
The BSC Panel has published a formal response to the Ofgem and the Department for Business, Energy & Industrial Strategy (BEIS) joint consultation which seeks views on a range of proposed reforms of energy codes.
The Panel argued that Code simplification and consolidation is still the most effective way to achieve many of the ambitions of the Review, including importantly reducing the cost burden on consumers. It suggested that non-regulatory options could lead to more effective, lower cost and less burdensome solutions. In the Panel’s opinion many of the issues are specific to individual Codes (or their Administrators) and not widespread, as might be inferred from the consultation. Yet the proposed solutions (abolition of Panels, licensing, tendering, etc.) will apply to all Codes.
The Panel urged Ofgem to consider a more targeted approach to the roll out of the measures, and priority should be given to the underperforming Code Managers/ Administrators and to some quick wins. It was concerned that tendering for Code Administrators had many unintended consequences, and argued for a process which benchmarked the best in the Code Bodies and set in train actions to bring all the others to this level.
Elexon is responding separately to the consultation, which closes on 28 September 2021.