Ofgem alone can’t achieve whole system view, MPs told

The potential role of a systems architect was on the table this week, as a committee of MPs heard that energy regulator Ofgem can’t achieve an integrated energy system alone.

Energy Technologies Institute (ETI) chief executive Dr David Clarke told a meeting of the Energy and Climate Change select committee that an overarching view of engineering, economics and consumers needs to sit above the transition to a new, integrated energy system.

However he appeared to dismiss arguments for a systems architect, saying that while it would be “very nice” from an engineering point of view to create a central planning body, “that won’t work, no chance.”

The committee hearing comes as the industry works with government, under the auspices of the Institution of Engineering and Technology (IET), to investigate the potential for a “systems architect” and define a “whole system view” of the UK’s evolving energy systems. Industry workshops are now underway.

Clarke said the current regulatory regime by Ofgem was “not really” addressing the interlocking roles of engineering, economics and consumers, and that the level of integration between gas and electricity regulation is currently “pretty thin”. He added that transport and heat, as they are decarbonised, will also play increasing roles in the energy system.

“There is clearly a need for better integration across the various regulators and various agencies involved… In the overall package, do you need some kind of energy authority that looks across power, heat, transport, electricity, gas and all the various sub-systems?”

Wales and West Utilities’ director, Asset Management and Health, Safety and Environment Chris Clarke disagreed on the level of integration, telling MPs that joint regulation by Ofgem and representation by the Energy Networks Association shows there is considerable integration.

He said: “I agree you need an optimised approach which is probably top down led rather than bottom up. I disagree that the two systems are separate, we are seeing a lot more integration between the two”.