Ofgem “continues to take the right steps” to fix energy price controls, says Citizens Advice

Citizens Advice, in its role as the official watchdog for energy consumers, has responded to Ofgem's latest announcement on the RIIO-ED2 electricity distribution network price control.

Dame Gillian Guy, Chief Executive of Citizens Advice, said:

“Energy network companies have been able to overcharge energy customers by billions of pounds for far too long. Today’s announcement shows Ofgem continues to take the right steps to fix this problem.

“New technologies like electric vehicles, smart appliances in homes and decarbonising our heating systems mean electricity distribution networks will be crucial to delivering a smarter energy system and supporting the net-zero transition. Ofgem’s new approach means consumers will pay a fairer contribution to upgrading electricity networks.

“It’s now up to the network companies to work with their customers and develop business plans that meet peoples’ needs, deliver good value and provide the right support for those in vulnerable circumstances.”

Background

  • 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

  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.