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Regulation to encourage innovation

Innovation is a key driver of productivity and competition in markets. In the energy sector, innovation in the form of new technologies, business models, and ways of governing the energy system can deliver lower costs, greater resilience and reliability of energy supply, as well as enable cost-effective decarbonisation.

Objectives of the consultation

In its Productivity Plan, the Government required all departments to publish an Innovation Plan by spring 2016. The purpose of each Plan is to set out how departments and regulators are adapting legislation and enforcement frameworks to enable innovation in the form of emerging technologies and innovative business models.

This consultation was issued to gather stakeholders views on current regulatory activities led by DECC and the Oil and Gas Authority (OGA), and how they interact with energy sector innovation. The Government sought responses to the following three questions but also welcomed general views on the overall theme.

  1. How can legislation and enforcement frameworks help support new technologies and business models to encourage growth?
  2. How is new technology likely to shape the energy sector?
  3. How can regulators better utilise new technologies to generate efficiency savings and reduce burdens on business?

The consultation closed on 11 February 2016.

Supporting papers

To download the consultation document, please follow the link below.

CIBSE response

CIBSE believes that regulation can drive innovation, not hinder it. Consultation is a key factor in the design of performance or outcome based regulations, using the knowledge and expertise of the regulated sector and its clients to help design a regulatory framework by consensus. Effective innovation and friendly regulation will rarely, if ever, be developed by isolated drafters working in a small group disconnected from the regulated market.

To read the full CIBSE response, please follow the link below.