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igem news

BIG DECISIONS AHEAD

Jonathan Brearley, Chief Executive of Ofgem, shared some of his of support is designed to help adapt
views on the UK’s journey to net zero, the role of Ofgem and the the networks over time, respond to
RIIO price controls changing government policy and get the
investment in place to move us towards
JONATHAN HIGHLIGHTED that hydrogen significant innovation and net zero.
although we have an established investment is a must. However, this Ofgem’s aims for the gas networks are
renewable pathway and a secure must be achieved in a way that meets to deliver a price control that offers the
market for how we power our lighting customer needs, achieves balanced necessary investment at a reasonable
and appliances, and some progress is returns and ensures businesses are cost, supports innovation for the best
being made in the area of low emissions running efficiently – and it is in this technological solutions
vehicles, how we heat our homes and frame that the price controls should be and continues to work
power our industries through low considered, he said. closely with industry
carbon means is still a big challenge. Jonathan accepted that there are big and government
With technology barriers to overcome strategic decisions ahead and because to make the
and both electric and hybrid options of that uncertainty Ofgem may need right decisions.
being considered, he stated that Ofgem to operate differently and the price Delivering on
is committed to playing a full part in controls will need to have flexibility. these aims on our
defining, developing and supporting He confirmed that the Network net zero journey
the rollout of new technologies. Innovation Allowance will continue will ensure that
Acknowledging that this challenge is set and the introduction of a new net zero customers have
within the context of the UK’s current ‘reopener’ fund will ensure that if we confidence, our
economic circumstances, investment to need more investment in a certain area, approach is fair and
support a green economic recovery will Ofgem will have the capacity to get that we maintain the
be key. He declared that Ofgem’s role investment in place quickly. excellent service
will be to help bring that investment It was also announced that a Strategic that the
forward, arguing that the RIIO Innovation Fund of £630 million, for networks
framework is set up to do just that. research into green energy projects, have
It was recognised that the UK needs will in part be spent on furthering delivered
more investment to get to net zero, and the networks’ work on hydrogen and so far, he
to achieve a successful transition to heating innovation. This package added.

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