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NETWORK / 17 / FEBRUARY 2020 current consumers against the interests of future consumers. Because when you make these kinds of big transformational investments, inevitably you will raise charges in the short to medium term, hopefully for the bene t of a future genera- tion of consumers. But, that is a di cult question because it is not obvious that loading extra costs on people that are already struggling to pay their fuel bills is particularly fair." Despite these disagreements however, there was broad consensus that the regula- tor is moving to rebalance its historical focus on short to medium term cost pressures on consumers with an appreciation of longer-term system transfor- mation needs, and that this is a good thing. Some examples of this were pointed to in the regulator's consideration of a National Grid proposal for a rapid EV charging network – regulatory experts explained that previ- ously this would have been con- sidered beyond Ofgem's remit to support and would have been pushed back to government. Furthermore, it was revealed, Ofgem is taking advice from the Committee on Climate Change about the extent to which it should allow for "oversizing" of networks today in advance of anticipated EV and electri ed heat demands. The regulator is "absolutely open to this idea" according to those in the know, albeit with due consideration to the fact that new tech- nologies may arise soon which mitigate the need for oversizing. It's likely that ‰Š‰Š will bring further insight and debate around this direction of travel in networks regula- tion. The year is set to be a critical one in terms of RIIO‰ business plan development at the DNOs and settlement decisions for the transmission networks, electricity system operator and GDNs. As discussion at this roundtable highlighted, these price control milestones must not progress in isolation and without regard to parallel developments in climate change policy and innovation. Our event signalled some signi cant anticipation of the outcomes of a Treasury review of decarboni- sation costs, including the way in which these are distributed across households, taxpayers and businesses. Furthermore, subsequent to our event, statements follow- ing the Conservative general election win have made it clear that the ‰Š‰Š Budget statement will include a strong focus on mobilising investment in low carbon technologies and infrastructure. And Network also understands that there are plans for a signi cant new industry initiative this year to explore ways of "recosting" en- ergy in order to deliver net zero. This work will be led by former MP Laura Sandys – now direc- tor of consultancy Challenging Ideas – who also spearheaded the high-pro le Energy Data Taskforce in ‰Š""•"–. Network leaders will be watching to see how these de- velopments should shape their own innovation and investment plans for a net zero future. They will also be on the alert to see how they are received by a regulator which has already acknowledged a need to build greater — exibility into its toolkit in order to accommodate fast- paced technology change and support an agile response to the threat of climate change. JG How do we decarbonise fairly? Darren Pettifer, head of regulatory fi nance, National Grid, refl ects on the implications of industry debate around decarbonisation challenges for Ofgem's upcoming price control decisions. "It was a privilege to sponsor this roundtable, and to hear the differing views from a wealth of experts on delivering decarbonisation for our industry in the fairest way. "There are so many new technological changes taking shape in the energy system today, ranging from peer-to-peer energy trading, electric vehicle charging, and ambitions to deploy hydrogen in the gas network to name but a few. These areas are developing fast, but there's still a lot of uncertainty over which technologies and business models will prove most competitive and offer the best solutions. "So, the big question for me is, if we aren't sure what's going to happen in the future – how do we incentivise the right innovation and investment for tomorrow while keeping energy bills affordable today? "As we transition to a new energy model and a net zero future, we know that we need a system that is fl exible, reliable and cost effective. To achieve this we need to have the agility in our regulatory framework, and in the broader energy landscape so that we can make investments that continue to deliver for consumers now and into the years to come. "To meet the needs of the future, including the 2050 net zero commitment, it is important the right mechanisms and models are in place for networks. For example, the Low Carbon Vehicle Partnership, having brought together key players in the energy, infrastructure and transport sectors, made proposals in January to ensure that the GB energy system is able to accelerate the mass take-up of electric vehicles (EVs). This partnership expects EVs to become the norm on Britain's roads within this decade. "This entails a signifi cant challenge – and opportunity for networks. Mass EV take-up will require the coordination of energy and transport planning to ensure we have the right infrastructure in the right place at the right time. So how do we do that while balancing anticipatory against unnecessary cost to consumers? "And while solutions for electric vehicles are more advanced, the decarbonisation process will certainly raise more unexpected technical and operational challenges for networks as new low carbon technology solutions develop in years to come. It is therefore important that funding frameworks enable necessary and diverse innovation projects to be undertaken by networks with a broad range of innovation partners. "In order to drive the right solutions, we need more coordination across the energy landscape from local authorities, government policy, transport, heat and energy. This will also require a progressive regulatory framework and a balance of risk and reward to attract the right investment. The next price control is crucial to making certain that we start on the right foot in delivering a cleaner greener Britain that is affordable." "Arguably the most controversial issue raised during the debate was Ofgem's current approach to balancing the interests of current and future customers" in association with