Competition in Onshore Electricity Networks
The electricity system will need fundamental change as we move towards Net Zero. Greater use of new, flexible technologies in generation and demand will create challenges for the electricity network from a governance and technical point of view, and the network will need to grow and adapt in new ways. Electricity network companies are fundamentally responsible for building, owning and operating electricity network infrastructure, ensuring it is ready to meet the demands placed on it. Ofgem regulate electricity network companies to do this efficiently in the best interests of consumers through a system of price controls. This system of responsibilities has broadly worked well, but we need to consider whether there are areas where more can be done to foster innovative and efficient solutions to the emerging challenges. Opening up electricity network ownership and operation to third parties will allow for new, innovative parties, with access to different sources of