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Industry backs Office of Energy to clarify debate

In the latest drive to foster a clear and honest debate within the energy sector, industry stakeholders have backed calls for the creation of an independent body dedicated to providing an evidence-based approach to the energy trilemma.

In a fresh research report published today by Vivid Economics, with support from Npower, stakeholders were found to support the idea for the Office of Energy which could introduce a framework for the ongoing public debate that is rational and free from the vested interests which many believe distort the key issues surrounding decarbonisation, investment and affordability.

The UK’s ambition to create an updated energy system has forced the industry into the glare of public scrutiny, with many now believing the sector has become a ‘political football’ at the expense of much-needed investment and reform.

Vivid Economics director Robin Smale said the criticism and controversy faced by the industry over recent years came in part due to a lack of impartial analysis.

“There is a case for a new role to enhance consumer and investor confidence by providing much needed, trusted, and clear analysis across the whole of the energy sector. Many stakeholders see value in this new role, and in identifying options for how this role could be delivered. With the CMA about to report, now is an opportune time to consider it,” Smale said.

If adopted by government the new body would build on the success of the Office for Budget Responsibility (OBR) and the National Institute for Health Care and Excellence (NICE) to address the complexity of the UK’s energy transformation in the same way that the Committee on Climate Change provides independent cross-party analysis, the Vivid Economics report suggested.

Npower chief executive Paul Massara said: “An Office of Energy would support and empower a continuing open and transparent debate about the competing issues of the trilemma. It will provide greater certainty for consumers and ultimately de-risk investment decisions and new capital.”