Reshaping Regulation suggests that electricity utility companies will need to transform to avoid being superseded by new service providers and data companies who will be better placed to serve consumers, and more effective at optimising our future electricity system.
It paints a picture of the long-term destination of the energy system and proposes a new set of regulatory principles focused around the consumers, data, markets and system security.
The four proposed regulatory principles are:
- A One-Stop-Shop Consumer Regulator: Regulate for how consumers consume not how businesses are organised reflecting the blurring and bundling of products and services.
- Optimise All Energy Assets: Regulate for system optimisation to deliver the most productive, efficient and affordable system changing the shape of the regulated market.
- Open Up Markets to More Players: Regulate to promote transparent, cost-reflective and open markets to allow new technologies and demand responses to compete with generation assets.
- Understand where Risk Really Lies: Regulate for where security of the system is truly at risk shifting from security of supply to cyber and data security.
ReShaping Regulation is a report from Laura Sandys, a former members of the Energy and Climate Change Select Committee, Dr Jeff Hardy and Professor Richard Green, Imperial College Business School, and sponsored by the Energy Systems Catapult.