All energy codes lead to net zero

Discussions about the energy system's 11 industry codes have been building towards a consensus that they could simplified. However, any change is now wrapped up in the over-arching subject of climate change, and that could change everything, says Utility Week editor Suzanne Heneghan

These days there’s no getting away from net zero in our industry – it’s the phrase upon everyone’s lips. As a colleague pointed out this week, it’s impossible not to mention climate change in utilities stories anymore.

Now enshrined in law, the challenge of achieving net zero emissions by 2050 pervades daily thinking throughout the UK’s energy and water sectors – and will do for years to come. It has reset priorities for leaders and thrown down the gauntlet to regulators and policymakers.

The manifold reach of this momentous legislation was demonstrated further last week at the AGM of balancing and settlement code administrator Elexon.

Discussions about the energy system’s 11 industry codes have long centred on their unco-ordinated development over decades. Consensus has been steadily building that the myriad complex, fragmented codes be simplified to make the system fit for the future.

But with net zero, the code review conversation has also moved up a gear.

A guest speaker at the event, Joanna Whittington, director general energy and security at BEIS, noted the current structure’s impact on efficiency and innovation – suggesting some measure of support for its consolidation. A couple of other nods were made to the possibility of a new body for “strategic direction”, and potentially greater empowerment of code managers.

But, just as in other areas of industry, any key code developments would now weave into the higher direction of travel of government policy – the UK’s achieving net zero by the middle of the century.

Whittington told delegates how supporting the energy transition would require an agile system, with a governance framework that not only ensured security of supply at an affordable price, but that could easily adapt to changing demand, and support new business models and innovation. “Government’s commitment to net zero will require unprecedented levels of change,” she said, noting a possible “disconnect” between “the development of energy policy by government and the ongoing development of the codes by industry”.

Ensuring they are “explicitly aligned to government policy and bridging this gap” will be important for the future, she said, as we strive for net zero.