Ofgem
Detail of outcome
We have decided to implement our preferred option for code governance reform, in which Ofgem will be given new strategic functions for codes and work alongside one or more licensed code managers. We expect this to result in a long-term net benefit for both industry and consumers, with no adverse material impact on consumer energy bills.
There is no firm timescale for the transition to the new code governance framework, but if legislation is enacted at the earliest opportunity, Ofgems new strategic functions might be established around 2023.
The majority of the functions would not go live in relation to a specific code until after the initial code manager has been appointed. Any necessary changes to licences, codes and contracts would then follow, including the implementation of code consolidation.
Detail of feedback received
We received 56 responses to the consultation from a wide range of interested parties, including:
- code panels and code administrators
- large and small code parties
- central system delivery bodies
- other interested parties, such as industry associations and consumers groups
The majority of respondents agreed that our preferred option would be best placed to reform code governance, where Ofgem would become the strategic body and establish separate code managers.
Our proposals on the roles and responsibilities of the strategic and code manager functions were also well-received. Many respondents expressed a desire to engage further on elements of our proposals such as:
- code manager roles and responsibilities
- the inner workings of stakeholder advisory forums
- the overall approach to code consolidation
Ofgem will consult further on these details.
Original consultation
Consultation description
BEIS and Ofgem are seeking views on proposals for energy code reform, developed with the help of feedback to our 2019 consultation.
In the earlier consultation we set out that our desired outcome for energy code reform is an institutional governance framework that is forward-looking, agile, easy to understand, and able to accommodate a growing number of market participants. We also proposed 2 governance frameworks that we believed would be capable of delivering this outcome. We have now developed these proposals further and are consulting on a preferred option of Ofgem being designated as a strategic body over the energy codes, with separate code managers.
We are also looking for views on:
- detailed elements of our proposals that were not addressed in the previous consultation
- the impact assessment which sets out some of the estimated costs and benefits of our proposed reforms
The consultation is open to all to respond, but we would like views in particular from:
- existing code parties
- wider industry players
- consumer groups
- academics
- existing code administrators
See the BEIS consultation privacy notice.
Please do not send responses by post to the department at the moment as we may not be able to access them.
