Strategy and policy statement

The Energy Act 2013 provides powers for the Secretary of State to designate a Strategy and Policy Statement (SPS) in which he would set out the Government’s strategic priorities and other main considerations of its energy policy, the policy outcomes to be achieved as a result of the implementation of that policy, and the roles and responsibilities of those who are involved in implementation of that policy. The Act and imposed new duties on Ofgem to have regard to the strategic priorities when carrying out its regulatory functions and to carry out those functions in the way it considers is best calculated to further the delivery of the specified policy outcomes.

Ofgem will be required to report each year in its forward work programme on its strategy for furthering the delivery of the policy outcomes and to report annually on the extent to which it has achieved its plans and the ways in which it has complied with its SPS duties under the Act. This consultation invites comments on the draft SPS.