This week, Ofgem submitted proposals for the creation of an independent body that will run the UK’s electricity network.
The move marks a radical change in the way that the country’s power will be managed and some experts believe that the move could save consumers up to £4.8bn by 2050. The move will also help the UK achieve its ambitious net zero target.
- Online energy comparison: find the best deals in your area now
According to reNews, the new Independent System Operator (ISO) will be fully separate from the National Grid, which owns the electricity distribution system. The job of the new body will be to “help bring forward green economic growth, accelerate our journey towards net zero and save consumers money on their energy bills”, according to Ofgem’s chief executive Jonathan Brearley.
The plan has already been welcomed by the government. Responding to the announcement, Business Secretary Kwasi Kwarteng offered his support for the proposal and confirmed that meeting the ambitious climate change targets would require “changes to how we turn the lights on, travel to work and even cook our meals.”
Why is change needed?
As the new ISO will be fully separate from the National Grid, it will help avoid any perceived or real conflict of interest.
In 2019, a legally separate function was created within the National Grid to manage the electricity system to help avoid this. But, it’s now believed that full separation is a better outcome due to the scale of changes required for the UK to meet its net zero target. After all, the energy system needs to undergo the biggest transformation in over a century.
The new body will need to plan future networks for hydrogen, deliver a four-fold increase in offshore wind and assess local area energy plans. The ISO will also need to charge millions of electric vehicles and enable a huge increase in renewable power while maintaining secure energy supplies.
On top of this, the new body will also need to keep costs as low as possible for consumers. Between 2022 and 2050, models show that as well as making the country’s energy system greener and more efficient, the system could save consumers between £0.4bn and £4.8bn.
Start saving today
The changes to the UK’s energy system will help lower your bills in the long term, but you won’t notice any savings until 2022 at the earliest.
But, the good news is that you can start saving on your energy bills today by running an online energy comparison. This will show you the best energy deals in your area and you can see exactly how much you’d save by switching provider.
All you need to do is provide some basic information about your home and energy use. In less than two minutes, you’ll be shown all the latest energy plans and tariffs from all of the UK’s best energy suppliers, but you can also narrow down your results.
So, if the prospect of green energy and a carbon zero future is something that excites you, you can filter your results so you only see green energy suppliers. Or, if you’re looking to save as much money as possible, you can just see the cheapest possible deals on the market.