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.”

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.