Red Tape Challenge update
In November 2011 the Energy Minister Charles Hendry urged business, green groups and members of the public to help identify ineffective, burdensome or unnecessary regulation as part of the Government’s Red Tape Challenge.
The Energy theme was in the spotlight on the RTC website for 6 weeks from 25 November 2011 to 06 January 2012. DECC has received, via the website, email and formal submission, over 100 responses, containing over 240 ideas and suggestions. Each idea is now being reviewed and advice will be put to Ministers. DECC’s regulations, and proposals for reform, will be scrutinised by the Ministerial Star Chamber in spring 2012 and we expect announcements shortly afterwards.
Although the Red Tape Challenge Energy Theme has now closed to new suggestions, DECC are always open to ideas to improve our regulations. You can still comment by emailing us directly at EnergyRedTapeChallenge@DECC.gsi.gov.uk.
The Government’s regulatory agenda
The Coalition Agreement introduced an ambitious programme to change the way government regulates. The aim is to cut out-of-date and unnecessary red tape to deliver greater accountability, and better focused, better targeted and more effective regulation. The key principles of this approach are:
- Regulation will only be introduced where satisfactory outcomes cannot be achieved by non-regulatory means, and where a regulatory approach is clearly superior.
- Regulation will not impose costs and obligations on business, social enterprises, individuals and community groups unless a robust and compelling case has been made.
- The Government will adopt a ‘One In One Out’ approach to new regulation whereby no new regulation is brought in without other regulation being cut by a greater amount.
The Government is also running the Red Tape Challenge, an initiative designed to promote open discussion of how the aims of existing regulation can be fulfilled in the least burdensome way possible.
Why the better regulation agenda is important
Applying the principles of better regulation can help government to be more effective by:
- pointing towards possible alternative, more effective, and less bureaucratic ways of delivering policy goals
- shaping regulatory interventions so that they do what we want them to do, in the most effective, least burdensome way
Regulation is never cost-free; burdens are borne by businesses, consumers, employees, charities, and the taxpayer through costs of enforcement. However, good regulation can be a good thing – it can provide vital protections and help realise benefits for the environment, society and the economy as a whole. For DECC’s stakeholders, it can provide can provide the necessary certainty required for long-term investment and help drive innovation.
What does it mean for DECC?
DECC works closely with the Better Regulation Executive (BRE), which leads on the Government’s regulatory reform agenda.
In addition, DECC has undertaken internal and external exercises to ensure less burdensome regulation where possible:
- In June 2010 DECC’s Parliamentary Under Secretary of State, Lord Marland, wrote to businesses to ask them for suggestions of where DECC could reduce red tape
Lord Marland’s stakeholder engagement exercise carried out in 2010 was a useful vehicle for Government to listen and take on board the concerns of industry.
Progress has already been made in almost half of the areas (15 out of 33) for example:
- We delayed the introduction of phase II of the CRC Energy Efficiency Scheme, allowing business more time to comply with scheme rules and saving them money.
- We will be looking to radically simplify the CRC Energy Efficiency Scheme and will be consulting industry in February on our proposed ideas to remove unnecessary burdens and making it easier for them to comply.
- The Green Deal and Energy Company Obligation consultation sets out our proposals for a radically new delivery landscape for energy efficiency, with opportunities for far more, and more various, companies to play a role. Within this, we are consulting specifically on ways to open up the future energy company obligation (ECO) to a greater range of delivery partners, for example via the creation of “brokerage” arrangements. This will provide more opportunities for smaller businesses to get involved.
The remaining ideas from the Lord Marland Stakeholder review have been included in the Red Tape Challenge: Energy theme. The outcomes of the Red Tape Challenge will be reported separately.
Earlier work on reducing regulation
In 2009, DECC published a Simplification Plan (its first as a stand-alone department). This presents opportunities to reduce administrative burden, while introducing necessary new regulation to achieve its climate change objectives.