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Citizens Advice response to Statutory Consultation on The Electricity System Operator Reporting and Incentives Arrangements: Guidance Document

Citizens Advice response to Statutory Consultation on The Electricity System Operator Reporting and Incentives Arrangements: Guidance Document 119 KB

There are many aspects we support in the reporting and incentives design. For example, the frequent feedback to the ESO; visibility of incentive reward process and an independent chair. We see the value of streamlining reporting arrangements and encourage aligning reporting to industry and to the regulator where possible, with a clear emphasis on the most relevant criteria in each role.

We are responding to this consultation to encourage the reporting and incentive reform to contribute to indicators of consumer value from the balancing market. The reporting and incentive model that Ofgem is outlining towards benchmarking balancing and forecasting is at a particularly challenging time due to the volatility of the balancing market and the uncertainty of forecasting caused by long term lockdown and the changing generation mix.