Streamlining the administration of energy schemes such as the feed-in tariffs and capacity market could save more than £100 million over the next 20 years, according to a new report.

Accountancy firm KPMG concluded that rationalising the myriad organisations involved in regulation could also help to cut red tape for industry.

The practice identified around 30 bodies that are currently involved in energy policy and market administration, including the Environment Agency, Ofgem E-Serve and the Low Carbon Contracts Company.

The cost of running the regulatory bodies currently exceeds £500m a year.

GoCo v NDPB

Robert Hull, Director of Power & Utilities at KPMG, said: “The energy delivery landscape is likely to face many challenges in future years as Government policy continues to have to adapt to meet the challenges of security of supply, affordability and decarbonisation in the most efficient and effective way.

“Policy support costs are already significant and are growing – the choice of the future administrative delivery model is an important one.”

The research concluded that a private sector Government Owned Contractor Operated (GoCo) model would be cheaper than a public sector Non Departmental Public Body (NDPB) delivery model.

The report – entitled Future Delivery Options for GB Energy Administration – was commissioned by energy services provider Gemserv.

> Download the report (registration required)

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