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Ofgem’s E-Serve functions will be split off from Ofgem as part of the government’s efforts to streamline the economic regulators, it was announced today.
In the Budget 2016 policy paper, the government said this would ensure that Ofgem can focus on its core functions of economic regulation and promoting effective competition in the energy market.
The document said: “The Department of Energy and Climate Change (Decc ) is committed to consolidating its delivery providers and will set out the future of consumer-facing functions, including those currently undertaken by E-Serve.”
E-Serve, is the delivery arm of Ofgem, was established in 2009 to look for innovative, efficient solutions to successfully deliver environmental schemes, and consumer and social programmes, on behalf of government.
The schemes the firm administers range from renewables incentives to energy efficiency and social programmes. It works with energy companies, consumer groups and other stakeholders, to ensure that policy targets are met in the “most economical and consumer-conscious ways possible”.
As Decc’s biggest single consumer delivery partner, the company is responsible for the delivery of the Renewable Heat Incentive, Renewables Obligation, Feed-in tariffs, Energy Company Obligation and Warm Home Discount.
Also in the paper, the Treasury outlined plans to give Ofgem more power to make sure the system of industry codes supports competition, and enhance the role of the Competition and Markets Authority in the regulated sectors, in an effort to strengthen competition and innovation in regulated sectors.
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