Energy UK Publishes 'Future of Energy' Report

The report looks at the future opportunities and urgent challenges faced across every aspect of the energy system and how best to meet these in order to deliver a market that works for all its customers.

The scope of the energy sector is wider and more interrelated than ever before so in compiling the report, Energy UK has been working with those who will play a key role such as customer representatives and charities, government and regulators as well as its own members - while also drawing on expertise from academics and the business, transport and building sectors.    

The Future of Energy report includes proposals and recommendations to kickstart the action needed in a wide number of areas including:                                                                 

• Changing current ‘one size fits all’ regulation for retail suppliers to increase competition and choice for customers by allowing providers to offer tailored services whilst maintaining consumer protections;
• Clear requirements and targets for energy efficiency and low carbon heating in all our homes to drive change alongside incentives and support;
• Empowering local partnerships to deliver a variety of potential low carbon heating solutions that best suit their communities and businesses;
• Making smart charging the default option for EV drivers to reduce demand on the grid and keep bills down along with establishing a core network of ultra-rapid chargers;  
• Ensuring all low carbon technologies have the same opportunities to further drive costs down for consumers while providing a stable policy framework that will give investors the confidence to fund the billions of investment needed;   
• Giving flexibility technologies the chance to provide cheaper alternatives to network reinforcements.    

Lawrence Slade, Energy UK’s chief executive said: “Our sector is already undergoing a transformation and as it continues, it will present huge opportunities and challenges, as outlined in this report. Get these right and we can deliver enormous benefits to customers, the environment, and the economy – but as recent protests, along with warnings from expert bodies, have highlighted, urgent action is required if we are to continue meeting our climate change commitments. As a sector we’ve led the way so far by halving emissions in the last ten years with the growth of renewables meaning that the majority of our electricity generation now comes from low carbon sources - and at an ever-falling cost to customers.

“But this progress will be wasted unless we press ahead, not just by continuing to decarbonise our sources of power, but crucially by doing the same in other sectors like heating and transport and getting serious about making our homes and businesses energy efficient. Setting clear targets and expectations in these areas will give the signal for the industry, in partnership with others, to bring the same innovation and investment that has already delivered results when moving to cleaner sources of power. The necessary change must be delivered in a way that is fair to all our customers. The future energy system will be very different from the one we have known and we need to bring all customers with us through this transformation, regardless of how much they want to - or can - get involved in how their energy services are provided and recognising that some will continue to need support throughout.”

In addition to the summary, the report also includes five sections looking in details at different aspects of the energy transition:

• The future retail market and customers’ relationship with it
• Funding future electricity generation and system services
• Reducing emissions from buildings
• The sustainable transition to a low carbon road transport system
• Transporting energy to and from customers through transmission and distribution networks.