AI in the energy sector guidance consultation
Summary
Ofgem consults on draft guidance for AI deployment across energy sector operations, covering safety, security, fairness and sustainability criteria. The guidance aims to streamline regulatory compliance by mapping AI use cases to existing regulatory frameworks rather than creating new rules. Consultation runs until spring 2025 with regulatory laboratory sessions in February.
Why it matters
This creates process guidance rather than fixing incentive structures — oversight layered on existing regulation instead of pricing AI-related risks or benefits. The approach favours incumbents who can navigate complex compliance frameworks over smaller entrants who might deploy AI more efficiently but lack regulatory resources.
Key facts
- •Guidance covers all energy sector licensees and market participants
- •Two regulatory laboratory sessions scheduled for 13 and 25 February 2025
- •Final guidance publication expected spring 2025
- •Builds on April 2024 AI call for input and strategic approach
Timeline
Areas affected
Memo
We are seeking views on our draft guidance about how artificial intelligence (AI) should be used safely, securely, fairly and sustainably in Great Britain’s (England, Scotland and Wales) energy sector to encourage more innovation. ### Who should respond We are seeking views from people and organisations involved with AI in the energy sector. We would like to hear from licensees, market participants, operators of essential services and dutyholders. We also welcome responses from technology companies, AI developers, consumer groups, charities, academia and other stakeholders. ### Background This guidance builds on our [call for input on the use of AI in the energy sector](https://consult.ofgem.gov.uk/energy-technologies/use-of-ai-within-the-energy-sector-call-for-input/), and our [high-level strategic approach to AI](https://www.ofgem.gov.uk/energy-policy-and-regulation/policy-and-regulatory-programmes/artificial-intelligence-ai-within-energy-sector), both published in April 2024. It sets out good practice for all stakeholders considering procurement or deployment of AI in the energy sector. Our guidance aims to streamline regulatory burdens on stakeholders, by acting as a roadmap to the existing regulatory framework. We want to ensure that stakeholders take appropriate and proportionate measures to mitigate risks and your views on this consultation will help inform our approach. ### Why your views matter We want to make sure people and companies within the energy sector use AI in a safe, secure, fair and sustainable way, building on the UK government’s AI principles and benefitting energy consumers. Your responses to this consultation will help us to develop the scope of our regulatory guidance and our approach to current and future risks as well as opportunities offered by AI. ### Next steps We have conducted two online engagement sessions providing an opportunity for stakeholders to ask questions and outline views on the consultation questions. These sessions took place on: Tuesday 7 January 2025 10:00am to 11:30am Thursday 9 January 2025 2:00pm to 3:30pm Ofgem is running two AI regulatory laboratory (AI Reg Lab) sessions to test this guidance in a table-top exercise. This collaborative approach with stakeholders will allow the practical application of the guidance to be tested in a safe space. We invite applications from energy sector licensees, market participants and operators of essential services. For successful applicants, these sessions will take place from 10:30am to 4:00pm on the following dates: Thursday 13 February 2025 Tuesday 25 February 2025 We aim to finalise and publish our AI guidance and consultation responses in spring 2025.