New inquiry: ESNZ Committee to examine the economics of the energy sector

• Inquiry: Economics of the energy sector
• Energy Security and Net Zero Committee

With the Government committed to decarbonising electricity by 2035, the Energy Security and Net Zero Committee inquiry will look at its approach to regulation, any barriers to reform and whether enough resources are going into putting the right long-term energy policies are in place.

The Government has published a summary of responses to its 2022 Review of Electricity Market Arrangements consultation, which ruled out several options for reform. The inquiry will consider whether the review is likely to deliver the changes needed to the energy sector. It will also look at how best to ensure consumers are protected from market failures.

Chair's comment

Angus Brendan MacNeil MP, Chair of the ESNZ Committee, said:

“There is broad agreement that reform to the energy sector and how it is regulated will be needed if the UK is to meet the challenges of the coming years, including decarbonising the electricity system over the next decade. Our inquiry will examine just what changes and interventions are needed, not just to deliver a clean and secure energy sector, but to ensure the market works in the favour of consumers.”

Terms of reference

The Committee is inviting submissions by Friday April 19^th based on the following questions:

1. What should be the underlying principles of the UK energy market?

2. Can Government deliver radical reform in the UK energy market?

3. Is the Review of Electricity Market Arrangements likely to deliver the necessary changes to the energy sector?

4. What are the major benefits that the UK should be seeking to deliver from energy market reform?

5. What are the chief barriers to reform of the energy market and is the Government serious about addressing those?

6. Is it possible to ensure that consumers are insulated from market failures in the energy sector?

Further information

• About Parliament: Select committees
• Visiting Parliament: Watch committees

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