AI in the energy sector guidance consultation

Closed 7 Feb 2025

Opened 13 Dec 2024

Contact

Jonathan Thurlwell

AIPolicy@ofgem.gov.uk

Feedback updated 20 May 2025

We asked

We asked for views from stakeholders on our draft guidance about how AI should be used in Great Britain’s energy sector.  

Our consultation questions asked whether the: 

  • existing regulatory framework is adequate to govern the use of AI 
  • good practice guidance covering governance, risk approach and competencies is sufficient for the ethical adoption of AI 

You said

We received responses from:  

  • Cadent Gas  
  • Cambridge Consultants  
  • Ceimia  
  • Centre for Net Zero  
  • Centrica  
  • Citizens Advice  
  • Crackle Energy  
  • DNV  
  • EDF Energy  
  • Electricity North West   
  • Energy Systems Catapult  
  • Energy UK  
  • E.ON UK  
  • Flexitricity   
  • Health and Safety Executive (HSE)  
  • IBM  
  • Icebreaker One  
  • Kraken Technologies  
  • Lane Clark & Peacock  
  • Microsoft UK  
  • National Grid  
  • Nemo Link   
  • Northern Gas Networks  
  • Northern Powergrid  
  • Northumbria University  
  • Octopus Energy  
  • Ömer  
  • OVO Energy  
  • Scottish Power  
  • Smart Energy Code (SEC) Panel Privacy Sub Committee  
  • Siemens Energy  
  • SGN (formerly Scotia Gas Networks)  
  • SP Energy Networks  
  • SSE plc  
  • SSE Energy Services  
  • Scottish and Southern Electricity Networks (SSEN Transmission)  
  • UK Power Networks  
  • University of Bristol  
  • University of Oxford  
  • University of York  
  • Urban Chain   
  • Utility Customer Service Management (UCSM) 

There is broad support for the guidance and its outcomes-focused approach.  A minority of stakeholders provided critical constructive feedback. Some expressed views that less prescription was needed. Others said more specific responsibilities for regulated persons were required. 

Specific issues identified by these stakeholders included: 

  • The AI definition is vague and can be interpreted to be inclusive of things which are not AI. 
  • The positioning, clarity of scope and status of the guidance is uncertain and clashed with the intended outcomes focused and proportionate approach. 
  • The suitability of the regulatory framework to deal with AI challenges. 
  • Areas not explicitly covered by the guidance, for example, the responsibilities of third parties and non-licensees. 

We did

We have fully addressed these issues by making appropriate revisions to the guidance. This ensures clarity around its purpose, scope and effect. 

We will keep the existing regulatory framework and this guidance under review. This will ensure our approach continues to meet the needs of regulating AI effectively in the energy sector. 

See our Ethical AI use in the energy sector guidance for details on good practice covering governance, risk approach and competencies for the ethical use of AI.

Read our policy page on the Ofgem website which outlines the steps we have taken in developing our regulatory approach to AI. 

Published responses

View submitted responses where consent has been given to publish the response.

Overview

We are seeking views on our draft guidance about how artificial intelligence (AI) should be used safely, securely, fairly and sustainably in Great Britain’s (England, Scotland and Wales) energy sector to encourage more innovation. 

Who should respond

We are seeking views from people and organisations involved with AI in the energy sector. We would like to hear from licensees, market participants, operators of essential services and dutyholders. We also welcome responses from technology companies, AI developers, consumer groups, charities, academia and other stakeholders. 

Background

This guidance builds on our call for input on the use of AI in the energy sector, and our high-level strategic approach to AI, both published in April 2024. It sets out good practice for all stakeholders considering procurement or deployment of AI in the energy sector. Our guidance aims to streamline regulatory burdens on stakeholders, by acting as a roadmap to the existing regulatory framework.  

We want to ensure that stakeholders take appropriate and proportionate measures to mitigate risks and your views on this consultation will help inform our approach. 

Why your views matter 

We want to make sure people and companies within the energy sector use AI in a safe, secure, fair and sustainable way, building on the UK government’s AI principles and benefitting energy consumers. 

Your responses to this consultation will help us to develop the scope of our regulatory guidance and our approach to current and future risks as well as opportunities offered by AI.  

Next steps  

We have conducted two online engagement sessions providing an opportunity for stakeholders to ask questions and outline views on the consultation questions.

These sessions took place on: 

Tuesday 7 January 2025 10:00am to 11:30am

Thursday 9 January 2025 2:00pm to 3:30pm 

Ofgem is running two AI regulatory laboratory (AI Reg Lab) sessions to test this guidance in a table-top exercise. This collaborative approach with stakeholders will allow the practical application of the guidance to be tested in a safe space.

We invite applications from energy sector licensees, market participants and operators of essential services. For successful applicants, these sessions will take place from 10:30am to 4:00pm on the following dates: 

Thursday 13 February 2025  

Tuesday 25 February 2025 

We aim to finalise and publish our AI guidance and consultation responses in spring 2025. 

Audiences

  • Energy industry employees
  • Consumer groups

Interests

  • Artificial Intelligence