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Ofgem must see tougher energy network price controls through, says Citizens Advice

30 July 2018

Citizens Advice has responded to Ofgem’s framework decision for the next set of energy network price controls (RIIO2).

Gillian Guy, Chief Executive at Citizens Advice, said:

“Ofgem’s continued commitment to a tougher settlement for energy network companies is another welcome step in the right direction.

“These decisions are extremely technical, but getting the numbers right matters. Ofgem’s decisions to examine how risky these firms are to investors, and to require firms to return unspent infrastructure funding to consumers are positive news. Our research shows that changes to these calculations could save consumers a further £4.1 billion during the course of the price control period.

“Ofgem’s commitment to putting consumers at the heart of future settlements is essential. Limiting network costs can take pressure off household bills. While people’s changing energy needs and the growth of new technologies like electric cars means networks should be made to work harder to understand their customers’ needs.

“There is a long way to go until the process is finalised and Ofgem will face significant pressure to water down these proposals. It’s essential that the regulator is able to see these measures through and deliver a fair deal for bill payers.”


  • Citizens Advice has established five principles which it believes need to be met if the RIIO2 price controls are to deliver for consumers.

  • Citizens Advice research (Missing Billions - July 2017) showed that energy network companies were making £7.5bn in excess profits during the current RIIO price controls.

  • Citizens Advice research (Things can only get beta - June 2018) showed that the current methodology for calculating the risk to investors - the equity beta - may be flawed and that a new approach could save consumers an additional £4.1bn.

Notes to editors

  1. Citizens Advice is made up of a network of local Citizens Advice in England and Wales, all of which are independent charities, the Citizens Advice consumer service and the national charity Citizens Advice.

  2. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers.

  3. Citizens Advice is the statutory consumer advocate for energy and postal markets. We provide supplier performance information to consumers and policy analysis to decision makers.

  4. The Citizens Advice Witness Service provides free and independent support for both prosecution and defence witnesses in every criminal court in England and Wales.

  5. Citizens Advice also offers Pension Wise appointments at 500 locations across England and Wales.

  6. The advice provided by the Citizens Advice service is free, independent, confidential and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.

  7. To get advice online or find your local Citizens Advice in England and Wales, visit

  8. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers.

  9. Last year we helped over 2.7 million people face to face, by phone, email or web chat. For full service statistics see our monthly publication Advice trends.

  10. Citizens Advice service staff are supported by more than 23,000 trained volunteers, working at over 2,500 service outlets across England and Wales.