Development and Assessment of Reform Options for Local Energy Institutions and Governance

About

Ofgem awarded a contract to Cepa for the development and assessment of reform options to local energy institutions and governance.

The purpose of the Distribution System Operation (DSO) Governance review was to establish the changes needed to institutions and governance arrangements to deliver energy system functions at a sub-national level to facilitate a timely and cost-effective net zero.

This built on Ofgem's joint commitment with the Department for Business, Energy and Industrial Strategy (BEIS) to ensure that institutional arrangements governing the energy system are fit for purpose for the long term.

The review involved a call for input, seeking evidence and views from stakeholders on the suitability of current and planned institutional and governance arrangements for energy system planning, real-time operation of local energy networks, and market facilitation of flexible resources, as well as potential alternative arrangements.

Sample framework models for alternative arrangements were included, ranging from governance reforms within existing institutions to more significant reforms such as reshaping roles or setting up new institutions.

The next step was to compile perspectives and evidence and further develop reform options through broad stakeholder engagement, with a focus on evaluating reform options and aiming to publicly set out conclusions by early 2023.

The contract value was AUD 170,000.