20 December 2007
Ofgem has announced that it will investigate increasing the role of emissions-cutting local energy generation.
Local generation, also known as distributed energy, cuts energy losses and improves security of supply by boosting the role of regional networks.
Electricity supplies therefore have less distance to travel from generator to the home.
The consultation is to be made in conjunction with the Department for Business, Enterprise and Regulatory Reform.
Ofcom expressed the hope that its investigation will pave the way towards removing "unnecessary" regulatory barriers preventing wider take-up of local generation.
Launching the consultation, Energy Minister Malcolm Wicks said: "Government has made clear that we want distributed energy to be able to compete alongside
the conventional alternatives.
"We want to ensure that the regulatory system is fit for purpose; cutting costs and reducing burdens so that new and smaller players can plug into the electricity system and play their part in a lower carbon future."
Chief Executive of Ofgem Alistair Buchanan added: "Ofgem, like the Government, is committed to ensuring that the current regulatory arrangements do not stop innovation and the growth of more distributed energy projects."
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