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Climate adaptation reporting second round: Ofgem (2016)

Description

This report is a follow up of a previous one issued in 2011 under the 2008 Climate Change Act. The report focuses on the adaptation measures applying to Office of Gas and Electricity Markets (Ofgem) and to the gas and electricity network companies responsible for transporting gas and electricity from the point of generation (or gas terminal or storage) to households and businesses. Ofgem has developed regulatory frameworks to support and promote resilience in energy networks (transmission and distribution networks). Under the current approach to the Adaptation Reporting Power (ARP), generators and network companies have been invited to consider climate change adaptation risks and responses and produce independent reports. Consistent with the 2011 report, the report reviewed the climate change risks highlighted by the regulated network companies in their adaptation reports and looked at whether regulatory tools and policies are enabling those companies to adequately identify, plan and prepare for climate change-related risks. The climate change scenarios have not changed since the last report and the sector’s risk profile remains largely the same. This view is borne out by the network companies’ assessment which includes experience of recent extreme weather events and academic views. Climate modelling however suggests the incidence and significance of weather-related impacts is likely to intensify from the 2020s onwards. The focus of this second-round report is therefore on assessing current network resilience and company approaches to future preparedness. This includes preparation for future predicted risks both within and to a degree between infrastructure sectors.

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