FUTURE REGULATION OF THE UK GAS GRID Annex 1:

Transcript:FUTURE REGULATION OF THE UK GAS GRID Annex 1::
FUTURE REGULATION OF THE UK GAS GRID Annex 1: Current stakeholder landscape Purpose of stakeholder analysis for this project High-level project objective CCC has established future demand scenarios consistent with carbon budgets Some scenarios are likely to involve significant regulatory and institutional reform in order to be realised. This project seeks to evaluate what changes might be needed, and how such reform might be implemented. Key questions for understanding the stakeholder environment Who are the key interested parties who are relevant to the process of regulatory/institutional reform? What are the various interests/incentives at play which may act as a barrier to any necessary reform? How are key decision-makers influenced by other parties? Where are there gaps in the current stakeholder environment – e.g. is there a need for greater co-ordination or overlapping responsibilities? We evaluate the three broad stakeholder “groups” Companies Decision-makers Customers Relevant stakeholder environment Decision makers (1 of 2) Responsible for setting UK strategic energy policy direction Role covers energy security; action on climate change; renewable energy; affordability; fairness; supporting growth; and managing UK’s energy legacy. Defines Ofgem’s remit (e.g. through the Utilities Act 2000) Independent regulator of the gas and electricity markets in Great Britain. Sets cost allowances, required outputs, and allowed revenue for the networks. Defines network License conditions. Objectives and duties are determined by primary legislation: Principal objective to protect interests of existing and future consumers. Consumer interest taken “as a whole” - including interest in the reduction of greenhouse gases Ofgem must promote effective competition “wherever appropriate” Ofgem must have regard to the need to ensure gas demands are met; to ensure licence holders can finance activities; and to contribute to achieving sustainable development. Ofgem must promote efficiency and economy; protect the public from dangers arising from licensed activities; and seek to secure a diverse/viable long-term energy supply. Decision-makers (2 of 2) UK’s primary competition and consumer authority Price control appeals are heard by the CMA – it will seek to ensure Ofgem’s reg. frameworks are well-reasoned and implemented correctly. Responsible for inspection and enforcement of safety legislation and regulations, e.g. Gas Safety (Management) Regulations 1996; Pipeline Safety Regulations 1996. Overseeing the Iron Mains Replacement Programme Likely to be closely involved in any possible hydrogen roll-out – to establish relevant safety standards and scrutinise/monitor safety issues. 375 councils in England and Wales, with almost 18,500 elected councillors Key responsibilities in relation to this project: