Ofgem supported, while green programmes lose funding

While the government reassures Ofgem on their role as a regulatory body, they have ceased to fund other flagship green programmes.

The Department and Energy and Climate Change’s (DECC) review into Ofgem, has concluded the system should be strengthened, bringing clarity and playing a larger role in the move towards a low-carbon economy. Meanwhile, their latest delivery looks to cut core funding to two flagship green bodies: the Carbon Trust and the Energy Saving Trust.

As part of the Ofgem review it was decided the group should continue to regulate independently of government, but said greater clarity and coherence should be added to the current system and the two distinct roles of government and Ofgem.

The review said the coalition will introduce new legislation – under a Strategy and Policy Statement – which Ofgem will be under obligation to meet.

These are expected to include a range of environmental and energy security targets alongside Ofgem’s core aim of ensuring value for money to customers.

It also states that Ofgem will set out annually how it plans to deliver its contribution to the goals, to increase transparency and accountability.

Chris Huhne, Energy and Climate Change Secretary said: “A strong, independent regulator will be crucial to building the secure, affordable low-carbon energy we need. Long-term certainty is vital too. We are proposing to set clear goals which Ofgem must play its part in meeting, so that industry and consumers know the rules of the game.”

In the Delivery Review, however, the DECC announced that core funding would be scrapped for flagship programmes including the Carbon Trust and the Energy Saving Trust.

As the focus moves towards their Green Deal programme, they said the relationships with the two groups should change, while they expect both organisations to develop commercial opportunities and to compete services put out to tender under the new deal.

The statement said: “The Department’s relationship with the Carbon Trust and Energy Saving Trust should change. Core funding will cease from 2012/13, but we expect both organisations to be interested in bidding for contracts to deliver activities to support the Green Deal.”

The review also confirmed a new Office of National Energy Efficiency will be established within DECC to provide an energy efficiency strategy.

The move into the private sector by the Carbon Trust has been developing for some months, and in February the group released a statement calling private partners to come forward, saying that mobilising the private sector will be key in delivering a low-carbon economy.

Tom Delay, Chief Executive at the Carbon Trust said the body was in a good position to continue work with the DECC and with the private sector.

He said: “As the UK’s independent authority on carbon reduction we look forward to continuing to work with the DECC given our expertise in low-carbon innovation and our strong track record in helping business to reduce carbon emissions.

 

Image: Yew Tree House | flickr