Gemserv is a delivery consultancy working at the heart of utility and environmental markets whose vision is to ensure complex markets work for everyone’s benefit. One of our roles is to support governance codes in these markets including the energy sector. Accordingly, we have been following with interest your investigation particularly relating to the updated theory of harm 5: the broader regulatory framework, including the current system of code governance, acts as a barrier to pro-competitive innovation and change. To contribute to the debate, we responded in March to your call for views on this theory.

I note you have already engaged with Elexon, the code administrator responsible for the governance of the wholesale electricity market. Elexon’s model is based on a non-competitive cost recovery service whose Balancing & Settlement Code role is enshrined in National Grid’s licence. Gemserv’s model is very different and unmatched in the code administration arena (as explained below), so I believe a dialogue to examine these contrasting models will make a significant contribution to your consideration of theory of harm 5.

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