Final energy network price controls are ‘progress’, says Citizens Advice
Citizens Advice, in its role as the official watchdog for energy consumers, has responded to Ofgem’s final determinations for the RIIO-2 price control (Transmission, Gas Distribution and Electricity Systems Operator).
Alistair Cromwell, Acting Chief Executive of Citizens Advice, said:
“Today’s announcement is genuine progress. For too long network companies were able to make excessive profits, not because they were efficient firms, but simply because previous price controls were too generous.
“We recognise these are hugely complex decisions in which the regulator has to balance value for consumers against profits and shareholder returns. Although we are pleased with this progress, we’ve argued that Ofgem could have gone further in limiting shareholder returns and still believe that to be the case.
“Beyond the headline figures, there is much to welcome in this price control.
“Networks will be critical to the transition to net zero. This settlement will, as we argued for, make sure companies can access funding for essential infrastructure projects quickly, while also making sure consumers’ money is well spent. And Ofgem’s expanded vulnerability package will mean better help for many people who need extra support.”
In its response to Ofgem’s Draft Determinations (September 2020) Citizens Advice argued that Ofgem could cut network returns by a further £1.7bn.
Citizens Advice previously established five principles which it believes need to be met if the RIIO-2 price controls are to deliver for consumers.
Citizens Advice research (Missing Billions - July 2017) showed that energy network companies were able to overcharge energy customers by £7.5bn during the current RIIO-1 price controls.
Notes to editors
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