Ofgem networks decision ‘strikes the right balance’, says Citizens Advice
Dame Gillian Guy, Chief Executive of Citizens Advice, said:
“Today’s announcement is another step closer to a price control that stops network companies from overcharging energy customers by billions of pounds.
“These decisions are extremely technical, but they matter. Ofgem has struck the right balance between shareholder returns and value for money for energy customers, while making sure networks can continue to attract investment.
“Energy networks are key to meeting net zero, but future demands on the energy system are hard to predict. Decarbonising heat, electric vehicles and increased use of smart products in the home will pose different challenges. But measures outlined today should potect consumers by ensuring the transition to net zero is done at a lower cost.”
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.
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
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