Industry and Regulators Committee
The net zero transformation: delivery, regulation and the consumer

1st Report of Session 2021-22 - published 4 March 2022 - HL Paper 162



Chapter 1: Introduction


The UK’s energy sector

The timeline for net zero

Our inquiry

Structure of this report

Chapter 2: The challenge of the net zero transformation

Missing policy implementation detail on the transition to net zero

Business models

The energy mix

Offshore wind and the planning system

Decarbonising heat

Who pays: taxpayers vs. billpayers

Chapter 3: Institutional architecture and Co-ordination

Co-ordination in government and the public sector

Current levels of co-ordination

Improving co-ordination

The role of the Future System Operator

Ofgem and its role in the net zero transition

Ofgem’s remit

Figure 1: Proposed institutional architecture

Giving Ofgem a statutory duty in relation to net zero

The need for a Strategy and Policy Statement

Chapter 4: Regulation, innovation and the consumer experience

Price controls

Enabling investment

Uncertainty mechanisms

Decentralisation and flexibility

How the system is changing

Codes and licences

Marginal pricing

Future energy business models

Consumer readiness and engagement

Retail energy market regulation

Summary of conclusions and recommendations

Appendix 1: List of Members and declarations of interest

Appendix 2: List of witnesses

Appendix 3: Call for evidence

Evidence is published online at and available for inspection at the Parliamentary Archives (020 7219 3074).

Q in footnotes refers to a question in oral evidence.

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