Public Value Energy Governance: establishing an institutional framework which better fits a sustainable, secure and affordable energy system

Abstract

This short Discussion Paper is intended to stimulate discussion about how governance of the energy system in Britain can better keep up with technological, economic and social change. We have set out a possible model for future governance and regulation – which moves from the ‘independent, CEO led’ model currently in Britain to one which is more ‘directed’ and which we argue is more legitimate, transparent and nimble; but which also better suits the characteristics of current technologies (whether supply, demand, storage and ICT integration). We would welcome comments on it by the end of June 2015. Whatever the optimum model for future energy system governance and regulation, though, the fundamental point remains: the current model of regulation in the UK’s gas and electricity systems is no longer fit for purpose.