News & Events

Ofgem has published the findings from its July 2026 AI Regulatory Lab, providing valuable insight into how artificial intelligence can be safely and effectively used within the energy sector. The initiative brought together industry participants and AI experts to explore the regulatory, operational and governance considerations associated with AI-enabled decision-making, particularly in areas linked to investment and capital allocation within critical national infrastructure.

For AMO members, the findings reinforce that AI should be viewed as a tool to support human decision-making rather than replace it. Ofgem emphasises that accountability for decisions with financial, operational, safety or regulatory consequences must remain with individuals and organisations, regardless of the level of automation involved. 

A key message throughout the report is the importance of explainability, transparency and data quality. Organisations adopting AI are encouraged to ensure that recommendations can be understood, challenged and audited, while maintaining robust data governance processes. Ofgem warns that poor-quality data can undermine AI outcomes and may amplify existing issues rather than resolve them.

The report also highlights the need to embed AI within existing governance, assurance and risk management frameworks. Higher-risk applications should be subject to greater validation and human oversight, with strong governance focused on decision outcomes as well as model performance. Ofgem notes that successful AI adoption depends as much on organisational capability, skills and trust as it does on the technology itself. 

For the metering sector, the findings provide a useful framework for organisations considering AI applications in areas such as asset management, operational planning, field service optimisation, risk assessment, customer support and data analysis. As digitalisation and data volumes continue to grow, the report serves as a timely reminder that responsible AI deployment requires clear accountability, effective governance and a continued focus on consumer outcomes. 

Ofgem has confirmed that the lessons from the AI Reg Lab will inform its ongoing approach to AI regulation and guidance, signalling the growing importance of responsible AI adoption across the energy industry. 

AI Reg Lab: July 2026 | Ofgem

Ofgem has been appointed by the Government to administer a new Bill Discount Scheme that will provide financial benefits to households located near new electricity transmission infrastructure. The initiative forms part of the UK’s wider strategy to deliver Clean Power by 2030 and accelerate progress towards Net Zero.

Under the scheme, eligible households could receive discounts of up to £250 per year on their energy bills. The Government intends for the first payments to be made in early 2027, recognising the important role communities play in hosting infrastructure required to support the transition to a low-carbon energy system.

The announcement reflects the growing need to expand Great Britain’s electricity transmission network to connect renewable generation, improve energy security and meet increasing electricity demand. By ensuring local communities share in the benefits of national infrastructure projects, policymakers hope to support the delivery of critical investments needed for the UK’s Net Zero ambitions.

For AMO members, particularly those with an interest in Net Zero and the future energy landscape, the scheme demonstrates how Government and regulators are seeking to balance infrastructure delivery, consumer engagement and community benefit. While not directly impacting metering operations, it represents another important policy development supporting the wider decarbonisation of the energy sector.

Ofgem has announced that its Energy Redress Scheme has now distributed a record £250 million to support energy consumers, helping more than one million customers across Great Britain since the scheme was established in 2018. The funding is derived from payments made by energy companies that have breached regulatory obligations, ensuring that money recovered through enforcement activity is reinvested for consumer benefit.

To date, the scheme has funded 887 projects, delivering practical assistance including fuel vouchers, energy efficiency advice, support for vulnerable households and innovative community energy initiatives. Funding has also enabled the development of community-owned renewable energy projects, helping to address fuel poverty whilst supporting the transition to a cleaner energy system.

Since 2020, Ofgem reports that more than £500 million has been returned to consumers through a combination of compensation payments, fines and voluntary redress contributions. Recent enforcement actions contributing to the fund include payments from British Gas following prepayment meter compliance failures and National Grid Electricity Transmission in relation to asset maintenance obligations.

The announcement reinforces Ofgem’s continued focus on consumer protection, regulatory compliance and delivering positive consumer outcomes. While the Energy Redress Scheme operates primarily as a consumer support mechanism, it demonstrates the increasing importance Ofgem places on ensuring energy market participants meet their obligations and that failures result in tangible consumer benefit. For metering organisations, the initiative highlights the broader regulatory emphasis on vulnerability support, customer protection and maintaining trust in the energy system.

• Improved navigation and usability – making it easier to locate code documents, consultations, release information, forms, and guidance.
• Enhanced stakeholder experience – providing a modern interface that supports more efficient engagement with REC processes and information.
• Greater accessibility of industry information – helping parties access updates, bulletins, governance materials, and programme information more effectively. 
• Support for future market developments – creating a scalable platform capable of supporting evolving REC services and regulatory initiatives.

The Department for Energy Security and Net Zero (DESNZ) has published the successful projects for the Warm Homes Skills Programme, a key initiative to strengthen workforce capability across the UK’s retrofit and energy efficiency sector and support the delivery of lower energy bills.

Running until July 2026, the programme will deliver up to 9,000 subsidised training opportunities for installers and retrofit professionals. It aims to address critical skills shortages that have limited the pace and quality of retrofit delivery, while creating clearer pathways into the sector for new entrants and opportunities for upskilling existing professionals.

In Phase 1, up to £8 million has been awarded to a range of training providers across England through a competitive process. These organisations include further education colleges, private training providers and industry-led bodies, delivering accredited courses aligned to national standards via a mix of classroom-based and online learning.

The funded training focuses on four core areas that reflect key gaps within the retrofit supply chain. These include retrofit assessment and coordination to support compliance with industry standards; fabric insulation and solar panel installation to improve building performance; entry-level awareness courses to encourage new entrants into the sector; and specialist training for professionals working on non-domestic buildings.

Overall, the programme represents a targeted investment in developing a skilled and competent workforce capable of delivering high-quality retrofit at scale. By increasing supply chain capacity and improving delivery standards, it is expected to support the wider rollout of energy efficiency measures, contributing to reduced energy consumption, lower household energy bills, and progress towards the UK’s net zero ambitions.

The Department for Energy Security and Net Zero (DESNZ) has introduced the Warm Home Discount (Scotland) Regulations 2026, which came into force on 1 May 2026 and will run until 31 March 2031. ome Discount Scheme in Scotland, a key government policy aimed at reducing fuel poverty by requiring licensed energy suppliers to provide financial support to vulnerable households. 

Under the scheme, larger energy suppliers (those with more than 1,000 domestic customers) are mandated to participate, while smaller suppliers may opt in voluntarily. 

Participating suppliers must deliver annual support to eligible households, including a £150 rebate applied directly to energy bills for qualifying domestic electricity and gas customers. 

The scheme maintains a dual approach to eligibility through:

• A core group, typically identified via data matching for automatic rebates; and
• A broader group, where eligible low‑income households may apply via their supplier. 

Overall, the continuation of the scheme provides long-term certainty for suppliers and consumers, while reinforcing government efforts to support households most at risk of fuel poverty in Scotland through targeted bill reductions.