40
Accepted
In order to deliver the Government’s target of a zero carbon electricity system by 2035,...
Recommendation
In order to deliver the Government’s target of a zero carbon electricity system by 2035, we further recommend that greater consideration is given to smart tariffs in the revised Energy Retail Market Strategy. Specifically, we ask the Government to consider how time of use tariffs can be supported while the necessary system reforms are being carried out. Consideration should also be given as to how to support the energy supplier market in engaging different customer groups in net zero and ensure sufficient protections are in place for vulnerable customers. (Paragraph 163). 80 Energy pricing and the future of the energy market Support for households
Government Response Summary
The government indicates industry is making progress on implementation of market-wide half-hourly settlement, which Ofgem believes will be an important enabler of a more flexible, low carbon and low-cost energy system.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
Industry is making progress on implementation of market-wide half-hourly settlement, which Ofgem believes will be an important enabler of a more flexible, low carbon and low-cost energy system. Suppliers are currently able to offer time of use tariffs using the elective half-hourly settlement process. A review of the operation of the process in 2020 showed that relatively few suppliers are using it, but no specific barriers or problems were identified.
Source
Committee
Business and Trade Committee
Report
Third Report - Energy pricing and the future of the Energy Market
26 Jul 2022
HC 236
Addressee Bodies
Department for Business and Trade
Timeline
Recommendation age
3.8 yrs
Report published
26 Jul 2022