WiredGov Newswire (news from other organisations)
CMA ruling on energy network appeals is a “good result” for consumers, says Citizens Advice
Citizens Advice, in its role as the official consumer watchdog for energy consumers, has responded to the Competition and Markets Authority’s (CMA) provisional findings on appeals by some energy networks (transmission and gas distribution companies) against their price control, known as RIIO-2.
Citizens Advice submitted evidence to the CMA stating that, if successful, appeals by networks could cost consumers an additional £1.5bn.
James Plunkett, Executive Director of Citizens Advice, said:
“Overall this is a good result for consumers. The CMA’s decision to confirm lower returns is a significant step forward in tackling the excessive profits made by network companies at the expense of their customers.
“But there remains a fundamental problem with the price control process. Networks have a clear advantage in terms of access to information, which continues to lead to favourable settlements and easily achievable performance targets.
“The CMA’s failure to tackle this means these companies could still make hundreds of millions of pounds in unearned profits, while customers receive nothing additional in return. At a time when so many households are struggling financially, this is deeply unfair.
“The current appeals process is costly, it’s skewed against consumers and is in desperate need of reform. There needs to be better coordination across markets to make sure the process for setting monopoly company profits genuinely delivers value for money 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 previously established five principles which it believes need to be met if the RIIO-2 price controls are to deliver for consumers.
Notes to editors
- 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.
- Citizens Advice is the statutory consumer advocate for energy and post. We provide supplier performance information to consumers and policy analysis to decision makers.
- The Citizens Advice Witness Service provides free, independent support for prosecution and defence witnesses in every criminal court in England and Wales.
- Citizens Advice offers Pension Wise services at 500 locations in England and Wales.
- 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.
- To get advice online or find your local Citizens Advice, visit citizensadvice.org.uk
- For consumer advice, call the Citizens Advice consumer service on 0808 223 1133 or 0808 223 1144 to talk in Welsh.
- 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.
- Citizens Advice staff are supported by over 23,000 trained volunteers, working at over 2,500 locations in England and Wales.
Latest News from
WiredGov Newswire (news from other organisations)
NHS Confederation - Healthcare leaders will welcome new advice on infection control measures, but Covid has not gone away28/09/2021 14:15:00
Dr Layla McCay responds to new recommendations from UKHSA on infection prevention and control.
LGA - Social care plan contains nothing to help millions ‘here and now’28/09/2021 09:40:00
The Government’s social care plan provides no extra funding for frontline social care and will do nothing to immediately help the millions of people who draw on and work in care and support, or will do so in the near future, councils warn.
UK Space Agency: Bold new strategy to fuel UK's world-class space sector27/09/2021 16:14:00
Government unveils new plans to strengthen the UK as a world class space nation.
CBI chief calls for 'COBR for Recovery' amid growing shortages27/09/2021 16:05:00
Director-General Tony Danker calls for a more urgent and active approach from government; temporary visas one of several measures needed
Economy to get £3.3 billion boost if the Chancellor reverses key worker pay cuts27/09/2021 12:15:00
Analysis published recently (Friday) by the TUC shows how the economic recovery can be sped up by reversing cuts to key workers’ pay.
Growth in retail sales and orders eases in year to September - CBI Monthly Distributive Trades Survey27/09/2021 10:33:00
Retail sales grew at the weakest pace since March 2021 in the year to September, according to the latest CBI monthly Distributive Trades Survey, while growth in orders placed with suppliers also slowed. Sales and orders are expected to rise at a faster rate in October.
Right to request flexible work as a day one request in Great Britain24/09/2021 16:05:00
Right to request flexible work as a day one request in Great Britain.
CBI responds to the UK Government's AI strategy24/09/2021 14:05:00
CBI recently (22 September 2021) responded to the UK Government's AI strategy.
Wales TUC: Time for Public Sector Leadership on Net Zero Plans24/09/2021 12:15:00
Unions have written to chief executives across the public sector in Wales calling for greater engagement with workers on net zero plans.