Code adminstrators facing major industry change call on Ofgem for leadership

The energy industry’s code administrators face a ‘crunch’ in delivering arrangements for major change in the next two years, along with huge political and regulatory uncertainty, at a time when the code arrangements themselves are in flux.

“Ofgem needs to demonstrate some leadership” and set the strategic direction for code administration it has signposted in its consultation. This will determine how administration of the energy industry’s codes will evolve, says David Jones, strategy director at one code administrator, settlements company Elexon. He was speaking as Elexon published a forward work plan that brought together cross-code changes for the first time.

The need for reform has already been recognised by Ofgem, which completed a review of codes administration in summer 2016 – just as the CMA recommended a more streamlined process, with more direction and co-ordination.

Jones said Ofgem had been open to feedback on changes, including the role of a new consultative board, but its potential scope was unclear.

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Find the Forward Work Plan here

Further reading

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