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.”

Background

  • 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

  1. Citizens Advice includes the national charity; the network of independent local Citizens Advice charities across England and Wales; the Citizens Advice consumer service; and the Witness Service.

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

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

  4. Citizens Advice offers Pension Wise services at 500 locations in England and Wales.

  5. Citizens Advice’s services are free, independent, confidential and impartial, and available to all regardless of race, gender, disability, sexual orientation, religion, age or nationality.

  6. To get advice online or find your local Citizens Advice, visit citizensadvice.org.uk

  7. For consumer advice, call the Citizens Advice consumer service on 0808 223 1133 or 0808 223 1144 to talk in Welsh.

  8. We helped 2.6 million people face to face, by phone, email and webchat in 2017-18. For service statistics see our monthly publication Advice trends.

  9. Citizens Advice staff are supported by over 23,000 trained volunteers, working at over 2,500 locations in England and Wales.