Ofgem has set out its initial views about whether existing reuglation is sufficient to capture AI and is "seeking views on proposals about how Artificial Intelligence (AI) should be used responsibly and safely in the energy sector to encourage more innovation."

Ofgem's initial view is that:

Our initial review of the regulatory framework applying to the energy sector suggests existing regulation is adequate to capture use of AI.

However, we do think there is value producing regulatory guidance and tools to the sector on the risk-based use of AI in the energy sector. This will require collaboration with the sector, academics and other regulators to:

  • keep abreast of AI developments
  • ensure consistency
  • tailor our regulatory tools for AI

Ofgem's anticipated recommendations will be based on three themes:

  • collaboration
  • addressing regulatory issues
  • sector support

Ofgem's views follow the UK government's White Paper on AI regulation which includes a series of cross-sector principles for regulators to apply within their remits. Further, the government's response to the White Paper also said that it has asked a number of regulators to publish an update outlining their strategic approach to AI by 30 April 2024.

Responses to Ofgem's call for evidence will be used to develop Ofgem's regulatory strategy about how AI is used within the energy sector now and in the future, including to refine its recommendations and view whether current framework is sufficient for AI. 

This call for input closes at 11:59pm on 17 May 2024 and evidence can be submitted here.

If you would like to discuss how current or future regulations impact what you do with AI, please contact Tom Whittaker, Brian WongLucy PeglerDavid VarneyMartin Cook or any other member in our Technology team.