Ofgem: Energy watchdog to consult over AI’s risk to industry collusion
The UK’s energy watchdog Ofgem has said it has concerns over the power for artificial intelligence (AI) to enable collusion among industry firms.
Ofgem today said that it is launching a consultation on the role of AI within the energy sector on the journey towards building a more flexible power grid, saying that the UK “cannot get to a net zero power system by 2035 or net zero by 2050 without its adoptions across the board.”
The call for input argues there is a “real risk” of the current data restrictions on the use of live data across the entire sector, which slows down the adoption of AI for system operation across all aspects of the grid.
To try and fix this, a full “principles-based, non-statutory” regulatory framework on the subject is expected to be published at the end of this month.
Ofgem said it “appears to have sufficient powers to address important risks arising from the use of AI when detected.”
However it added that if its powers cannot keep pace with the adoption of “frontier, general purpose AI” then it will look at “tougher, statutory options” to safeguard the UK’s demand and supply of energy.
This includes turning “AI into the solution not the problem,” through controlling and reducing energy usage through load shifting during peak hours and identifying and signalling problems, and detecting equipment failures before they occur.
Currently, the majority of UK energy suppliers use AI in their customer facing services and all the transmission and distribution network owners are starting to roll it out.
Akshay Kaul, director-general of Ofgem’s infrastructure unit, said: “AI is central to building a smart, digital energy system at the lowest possible cost to billpayers and the public purse.
“Britain cannot harness AI’s huge potential for net zero, however, without a clear framework to protect consumers if it is misused or used inappropriately.
“We want households and businesses to get the maximum benefit from AI’s many applications in energy, while protecting consumers from harm with targeted and proportionate regulation.”
In the recent Spring Budget, Chancellor Jeremy Hunt committed to more than £100m in additional funding to support regulators and advance AI research.
However, it appears that just £10m will be put towards helping regulators develop the skills and training needed to deal with AI in their respective industries.