Energy markets by their nature are complex. This is reflected in the supporting industry codes, agreements, and subsidiary documents (“codes”) that ensure energy market interoperability. Codes enable Government driven, consumer focused transformational initiatives to be implemented, as well as provide governance and procedures that support and afford rights to energy companies to ensure fair market practices prevail. To a large extent, codes have performed extremely well to date, contending with significant volumes of change and market reform initiatives. However, the unprecedented levels of change and the challenges this presents for energy companies, highlights the need for code governance reform to help make codes more accessible, consistent, and better coordinated.
As a Code Administrator for over 15 years, we have practical, working knowledge of code governance and understand the operational and technical code governance challenges faced by market participants. This means that we have developed a very rich understanding of the issues that are impeding the progress of good code governance practice. More than ever, it is clear that a joined up, more strategic approach to energy governance is needed.
This paper* sets out an informed proposal to design a sustainable code governance approach that can be implemented within 18 months, one that deals with the challenges of today and yet robust enough to cater for 2020 and beyond.