Cutting red tape – Barriers to growth and productivity in the energy sector

Gemserv is a specialist energy, environment, water, and information security consultancy – we have over 15 years’ experience across the utility sector, placing us at the forefront of major policy developments and industry initiatives. We have also been instrumental in supporting the implementation of the UK Government energy efficiency programmes and we play a fundamental role in the governance of customer switching practices and the rollout of smart metering. We provide market design advice to regulatory and government bodies, drawing from our deep understanding of how markets work. Consequently, this gives Gemserv a unique understanding of the effects of regulation, across a wide range of businesses, be they large, medium or small.

The focus of our response draws heavily on the role of energy market industry code governance (“Codes”). Codes play an important role, complementing regulation via sound governance practices and support mechanisms. Codes support not just retail energy matters, but throughout the energy supply chain including networks, wholesale, and settlement aspects. It is in this regard that we draw upon the CMA work to help inform on how effective competition coupled with effective code governance, helps to lessen the regulatory burden (red tape) for all energy market participants across the energy sector as a whole.

In this response we explain that:

  • Regulation should be a last resort;
  • Industry codes support the Cutting Red Tape objective; and
  • The adoption of four principles will help ensure that new and existing regulation is simple to understand, consistently applied, accessible, and properly co-ordinated.

To read the full response please click below:

Cutting Red Tape – Barriers to Growth and Productivity in the Energy Sector

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