Letter to OFGEM

Joint letter by email to Jonathan Brearley, Chief Executive, OFGEM

Follow-up to OFGEM proposals re National Grid

Dear Mr Brearley

We wholeheartedly support OFGEM’s proposal (press release 25th January* and your BBC Radio 4 Today Programme interview on the same day), that National Grid should be replaced by an independent electricity transmission system operator.

The future direction of Britain’s nationwide power transmission system should indeed be planned in consideration of the best long-term business and environmental interests of the nation as a whole, and not for short-term benefit of shareholders – especially ones who are investment-shy.  Therefore, whatever body replaces National Grid must be constituted to prioritise long term Common Good aims.

We urge OFGEM to take matters further, and call for the same “re-purposing” of Distribution Network Operators (DNOs).  Here in Wales, we all too regularly hear complaints that our local DNO, Western Power Distribution:
– demands exorbitant charges for connecting a wind turbine or a solar array, even at only farm scale;
– alternatively point blank refuses to allow a connection on any terms;
– refuses to even open a dialogue when individual householders apply for supply reinforcement so they can convert from oil heating to heat pumps, or developers wish to equip new housing schemes with heat pumps;
– declares large areas of their region “closed to extra generation” on the grounds that their legal constitution, which prioritises the interests of shareholders over provision of service, absolutely prevents their investment in network reinforcement – even though they quite often admit that those parts of the network are already being run at above design capacity, which can hardly be described as sound practice.

After Brexit, and hopefully very soon post Covid, and considering the inevitable international trade concessions which we know are in the pipeline, farmers and landowners (including local authorities) and all manner of other businesses and community groups are going to need to diversify in every possible way in order to survive.  West Wales in particular has superb wind and solar energy resources, but without the fast replacement of our DNO by a Common Good regional network operator, the revenue earning potential and inward investment opportunities will be denied to the people of Wales by an American Board of Directors.

We know that businesses, industries, communities, and individuals in other areas of the United Kingdom are also finding their aspirations for expanding renewable electricity generation frustrated by their respective DNOs in the same way.  Therefore we urge OFGEM to issue a follow-up recommendation to the 25th January statement, calling for all regional electricity distribution networks to be henceforth managed for the Common Good.

Christopher Jessop  Independent Energy Consultant  Marloes  Pembrokeshire
Blaise Bullimore  Consultant Marine Biologist  Tiers Cross  Pembrokeshire
Charles Mason  Planning Consultant  Hermon  Pembrokeshire

* “Ofgem recommends an independent body to help lead Britain’s green transformation”: OFGEM press release, 25th January 2021