The EIUG generally agrees with Ofgem’s draft forward work programme, but would like to make the following points and suggestions;
- Ofgem to set out how it intends to interpret the new Net Zero and Growth duties, with its existing duties, and communicate this to stakeholders;
- Ofgem to consider the risk of carbon leakage in its regulatory decision-making;
- The EIUG supports Ofgem’s work on accelerating and reforming electricity network connections for generation and demand users;
- Ofgem to work with the ESO to introduce an incentive to capture the economic benefit of avoiding inefficient network capacity expansion to deliver value for consumers;
- The EIUG wants to highlight the importance of the future of the gas grid for gas-intensive industries;
- Ofgem to reflect the lack of evidence how local marginal pricing might impact on large electricity demand users in its continued work on the development and assessment of wholesale market reforms.