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)
3 in 4 disabled workers earn less than £15 an hour09/12/2022 16:05:00
New TUC analysis reveals more than three million disabled workers earn less than £15 an hour.
UK Space Agency: Climate change instrument arrives at Harwell Space Cluster09/12/2022 12:15:00
A joint British and French satellite dedicated to monitoring atmospheric carbon dioxide has arrived in the UK where assembly and testing will be completed.
NHS Confederation responds to the latest performance statistics & winter situation report08/12/2022 16:15:00
Matthew Taylor responded to the latest performance statistics & winter situation report.
CBI - Government support scheme must target heavy energy users08/12/2022 13:25:00
The CBI is today (Thursday) urging the Government to extend the Energy Bill Relief Scheme for significant energy users beyond the end of March 2023 and provide additional cashflow support for vulnerable businesses, especially SMEs
Wales TUC: 4 in 5 Disabled workers in Wales earn less than £15 an hour08/12/2022 12:25:00
Four in five (79%) Disabled workers in Wales earn less than £15 an hour, according to new analysis of official statistics published by the Wales TUC yesterday
LGA responds to latest ONS smoking habits figures08/12/2022 11:25:00
Cllr David Fothergill, Chairman of the LGA’s Community Wellbeing Board responds to the latest ONS figures on adult smoking habits, which show that the proportion of the population in England who are current smokers has fallen to 13 per cent in 2021.
CIPD - Almost half of employers don’t have an inclusion and diversity strategy in place, research reveals07/12/2022 16:25:00
Employers need to be focused and demonstrate a clear commitment to improving inclusion and diversity to ensure workplaces are fair for all, say the CIPD and Reed
NHS Confederation responds to announcement on ambulance strike dates07/12/2022 15:25:00
Matthew Taylor responds to announcements on strike dates from unions representing ambulance workers.
NHS Confederation - Health leaders welcome new Elective Recovery Taskforce - but no guarantees07/12/2022 14:25:00
Rory Deighton responds to the DHSC announcement of the Elective Recovery Taskforce to help unlock capacity in the independent sector.
UNICEF UK President, Olivia Colman, help packs humanitarian supplies for Ukraine during visit to UNICEF'S global supply and logistics hub in Copenhagen07/12/2022 13:25:00
UNICEF UK President, Olivia Colman, visited the UNICEF Global Supply and Logistics Hub in Copenhagen this week, where supplies are being shipped to Ukraine, and other humanitarian crises around the world, including Afghanistan, Ethiopia, Pakistan, South Sudan and Yemen.