Issue link: https://fhpublishing.uberflip.com/i/961476
RUNNING THE RULE OVER REGULATION Regulation is a key theme that runs throughout this issue. With Ofgem recently setting out proposals for RIIO2 – the new regulatory framework which will run from 2021 – we've sought the views of the sector. Britain's energy regulator has proposed that the amount network companies pay their shareholders will go down to between 3% and 5%, from 6 to 7% currently. They say this will result in more than £5 billion worth of savings for consumers over „ ve years. Ofgem has also proposed cutting the regulatory period to „ ve years from eight years. In a statement, Ofgem said: "Ofgem is able to drive forward a tougher regulatory framework for the next price control thanks to a stable, predictable and low risk regulatory regime which ensures consumers bene„ t from high levels of investment and innovation at the lowest cost." On page 11, Maxine Frerk (former senior partner networks at Ofgem and now director of Grid Edge Policy), gives her views on RIIO2. She says that there's a question mark around how to ensure companies think long term and continue to innovate when faced with a slimmed down innovation incentive and a shorter price control. Given her background, the piece makes for interesting reading. I recently chaired a Network/Energy Systems Catapult industry brie„ ng (page 38) where one of the main subjects up for debate was the governance and regulation of the energy system. There were some extremely interesting points raised with a number of attendees raising concerns that regulation was lagging behind, and potentially stiš ing, innovation. Finally, con„ dence in Ofgem's RIIO framework is rated at just 5.2 out of 10 - according to the Disruption and Regulation Report released in conjunction with Utility Week Live (page 33). Overall, it is clear to see that regulation will play a vital role in shaping the energy landscape. With Ofgem set to „ nalise the framework for setting the next price controls in summer 2018, regulation will continue to be a key theme going forward. NETWORK / 5 / APRIL 2018 L E A D E R C O M M E N T C OMING SO ON ∙ Blockchain explained ∙ Decarbonising the energy sector ∙ Energy systems integration YOUR NET W ORK Give the people what they want Let us know what projects, technologies and topics you want us to cover. Have your say Express your opinions and respond to content by blogging or writing for the magazine. A social Network Follow us on Twitter: @Network_mag Email the editor: alecpeachey@fav-house.com Alec Peachey alecpeachey@fav-house.com and potentially stiš ing, innovation. Finally, con„ dence in Ofgem's RIIO framework is rated at just 5.2 out of 10 - according to the Disruption and Regulation Report released in conjunction with Utility Week Live (page 33). Overall, it is clear to see that regulation will play a vital role in shaping the energy landscape. With Ofgem set to „ nalise the framework for setting the next price controls in summer 2018, regulation will continue to be a key theme going forward.