Ofgem has put forward a range of potential reforms to reduce UK’s reliance on expensive gas imports and accelerate the transition towards cleaner, more secure and affordable supplies of home-grown energy.

Last October, the Government pledged to decarbonise all our electricity generation by 2035 and followed with the publication of the British Energy Security Strategy. The strategy sets plans to reduce the reliance on gas imports, including up to 50GW of offshore wind by 2030 and a five-fold increase in solar power by 2035.

However, existing market, regulatory and institutional arrangements are not yet filly aligned with a net-zero power system in the most cost-effective way. Ofgem has therefore published its Net Zero Britain discussion paper, setting out a range of options.

Jonathan Brearley, chief executive of Ofgem, said: “Record gas prices are driving the cost-of-living crisis, causing real harm to customers and the wider economy. As well as doing everything we can to protect customers now, we must diversify Britain’s energy supplies away from gas as soon as possible.”

The discussion paper identifies two key areas of reform: Strategic planning for the energy system by a new independent Future System Operator at a national level and a potentially similar model at a local level, and potential reforms to the electricity wholesale market, including limiting the price setting potential of natural gas.

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