The energy market is undergoing unprecedented levels of reform, and it is the degree of transformation that is causing the greatest difficulty for organisations. This is evident, for example, by the submissions made to the Competition and Market Authority (CMA) Energy Markets Investigation and from feedback at the independent suppliers’ day held by Gemserv in early June 2015. Many energy market participants (of all sizes) have advised they can struggle with the breadth and depth of energy market regulation and code governance, with limited resources and even less time to keep abreast of industry change.
Further to this, the business models of new participants within the energy market has changed (and continues to change). Often their needs are different to ‘traditional’ businesses, and they wish to interact with the markets they serve in different ways. Therefore market regulation and code governance is already adapting to meet the changing needs.
The Code Administration Code of Practice (CACoP) and ongoing Code Governance Reviews will not sufficiently address the core issues. A more strategic approach is required to provide the market with clarity and certainty of purpose going forward. There is an opportunity to establish a blueprint for codes and their strategic governance for years to come, in a manner that does not disrupt market transformational programmes already underway, and is commensurate with the resourcing capability of those that have to engage in code evolution.