Is energy market governance a barrier to innovation?

Is energy market governance a barrier to innovation?‘The energy sector needs some rules, but the changing energy market has got ahead of regulation.  Today’s regulation fits yesterday’s market.’

These were some of the observations made at Gemserv’s breakfast roundtable held in April.  Twenty participants representing new market entrants, innovators and the regulator came together to discuss how energy market governance works for them.  The purpose – to share experiences and to learn from them.

The consensus was that today’s governance is not keeping up with the rapidly changing energy supply model.  Many thought that for governance to get ahead and be ready for change would require a seismic shift in the governance model.  Some thought that this should be delivered through Ofgem and they also looked to code bodies to take responsibility to reduce the code governance burden and complexity.

Generally participants were pleased by Ofgem’s ‘can do’ approach and were encouraged by the support provided through the ‘innovation link’ and trialling.

It was observed that innovations start in an unregulated area and then as they move towards the retail market they begin to touch on the regulated area.

Perversely anticipation of changing regulation is also leading to hesitation, a ‘holding off’ on making decisions and building up a resistance to pressing forward. Innovators, new entrants and small businesses need certainty too, along with their investors.

After the success of this first ‘Innovators Forum’ and the overwhelming support for them to continue, we are holding a second roundtable on Wednesday, 18th July – Breaking new ground in Energy Governance.  Do you want to join the debate?

This session will build on the previous event and look at how the governance model might be lighter, have greater agility and support participants rather than hinder? Can we learn from other regulated markets?

So If you have ideas and experiences of navigating energy governance and want to share your thoughts, please email us at to get involved.  We look forward to hearing from you.


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