Energy Systems Catapult welcomes the opportunity to respond to this Energy Security and Net Zero committee inquiry on the cost of energy.

Key messages from our response:

• The wholesale market framework is outdated. More granular locational pricing and shorter settlement periods are needed to better reflect local generation and demand dynamics. This can reduce costs for consumers and improve the integration of renewables.
• The full potential of flexibility is not yet reflected in consumer bills. Introducing more diverse retail models – potentially including allowing secondary suppliers, promoting consumer-led aggregation, and improving price comparison tools – could enable consumers to access cheaper and more innovative energy services.
• Target protection at vulnerable consumers. A Net Zero grid will ultimately provide savings for all consumers. In the near term, the government should develop digital tools and sophisticated data insights that enable better targeted protection. Doing so ensures better outcomes, saves costs and provides confidence for implementing ambitious reforms.