Response to Ofgem’s consultation ‘Allocation of voluntary redress payments in the context of enforcement cases’

Citizens Advice response to Ofgem's consultation, 24th August 2016 

Citizens Advice is generally supportive of Ofgem’s proposals to change the process of allocating voluntary redress payments. We consider that most of the proposed new principles, including an open bidding process, should help achieve the policy objective of maximising long term benefits for energy consumers by ensuring that funding is well targeted. However, we are not supportive of arbitrary constraints on the outcomes of the process according to the size of the funding award.

We are also supportive of using a third party expert to allocate funding, so long as this is done at minimal administrative cost. We consider that this option should allow for more innovative approaches to providing funding, including periodic funding rounds and phased payments. Alongside greater support, these innovations could allow a wider range of organisations to apply for funding.