The Sustainable Development Commission’s proposal to overhaul the energy market through changes to Ofgem’s remit could revolutionise the UK energy industry.

Ofgem is the gas and electricity regulator. In its current role, its duty is to ensure a nationally competitive regime for both domestic and commercial gas and electricity customers. The SDC proposes shifting the watchdog’s focus from lowest cost to creating a sustainable system that costs as little as possible.

One of the commission’s key recommendations is to add the provision of heat to Ofgem’s responsibilities. Heat amounts to about 47% of the UK’s carbon dioxide emissions and about 50% of its energy use, so the proposal for a heat network could make a big impact. There are no national or even regional heat networks in the UK, although there are a number of city-based ones such as those in Southampton, Woking and Nottingham. Sheffield’s district energy system is one of the largest; it is estimated to save 31,000 tonnes of CO2 for every 100,000MWh of energy supplied.

For building services engineers, a heat and electricity network would be an important development since it would need to be based on the creation of local heat and electricity grids rather than large-scale centralised generating plant. These networks would create opportunities for carbon-saving technologies such as combined heat and power by allowing excess heat and electricity to be used locally or sold to the network. The concept is similar to the one the mayor’s climate change adviser, Allan Jones, outlined in his plan for London (BSj 03/07), except on a national scale.

With the government consulting on replacement options for the UK’s ailing nuclear stock, what better time for a radical rethink on how it might meet future energy needs and environmental commitments. Electricity generators might fight to maintain the status quo, but if the government is serious about achieving its environmental targets cost-effectively, it should give the SDC’s proposals serious consideration.

Andy Pearson