Energy code reform: code manager licensing and secondary legislation
This consultation is open for responses
Respond to this consultationSummary
DESNZ proposes licensing regime for energy code managers under the Energy Act 2023, requiring Ofgem approval for organisations managing industry codes like the Grid Code and Connection and Use of System Code. The consultation sets out standard licence conditions and selection processes for code managers, with updated text published 24 April 2024 correcting a question on funding mechanisms. This implements the code governance reform framework established in the Energy Act 2023.
Why it matters
Code manager licensing creates a new layer of regulatory oversight over industry code governance without addressing the underlying incentive problem — codes remain managed by incumbents who benefit from complexity and delay. The reform adds administrative process rather than pricing the costs of code changes or establishing clear liability for delays.
Key facts
- •Energy Act 2023 received Royal Assent October 2023
- •Consultation updated 24 April 2024 with corrected question Q4.2 on funding
- •Creates licensing regime for code managers
Areas affected
Related programmes
Memo
Following the Energy Act 2023 receiving Royal Assent in October 2023, we are developing the secondary legislation and regulatory framework for code managers, which will allow Ofgem to implement a reformed industry code framework and drive strategic changes across the codes in the interest of consumers and competition. In this consultation we set out our initial proposals for code manager standard licence conditions and selection processes. Updated 24 April 2024 We have corrected a typographical error in the consultation. Specifically, we have included a question (Q4.2) regarding views on the proposals concerning Chapter 4 - Code Manager Funding and Cost Recovery.