Ofgem responds to National Audit Office report on electricity networks
Ofgem has responded to National Audit Office report on electricity networks.
Akshay Kaul, Ofgem’s director of network price controls said:
“We welcome the NAO’s findings that Ofgem’s regulation has delivered consumers a good service, increasing customer satisfaction and sharply reducing power cuts to half the European average, whilst attracting £70 billion investment to connect record levels of renewable power.
“We acknowledge that the overall costs to consumers to date have turned out to be higher than they needed to be. That’s why our tough new round of price controls will lower returns to save consumers money, whilst pushing companies to go further on decarbonisation and ensuring we retain one of the world’s most reliable energy systems.
“Under our regulation, companies must share any savings they’ve made during the price control period with consumers. So far, over £6 billion has been clawed back across all networks through reduced revenues or voluntary contributions.”
Ofgem is currently setting its next round of energy network price controls for gas/electricity transmission (T2) and gas distribution (GD2) from 2021 to 2026, and for electricity distribution (ED2) from 2023 to 2028. See “Ofgem confirms network price control methodology so consumers can benefit from cheaper, smarter and more sustainable energy network” for more information on our proposals.
For more information
For media, contact:
Tel: 0207 901 7460 / 07990 139504
Latest News from
Ofgem appoints Octopus Energy to take on customers of Effortless Energy Ltd07/09/2020 13:15:00
Ofgem has appointed Octopus Energy to take on supplying Effortless Energy Ltd’s (trading as Go Effortless Energy) approximately 2,500 domestic customers and small number of non-domestic customers.
Ofgem fines SSE £2.06 million for failing to publish inside information about the wholesale energy market04/09/2020 13:15:00
The £2.06m fine, the first relating to the publication of inside information in energy markets in GB and the EU, sends a strong message to SSE, and other wholesale energy market participants, about the importance of fully complying with REMIT rules.
Ofgem protects customers of failed supplier Effortless Energy Ltd01/09/2020 15:15:00
Effortless Energy Ltd (trading as Go Effortless Energy), a gas and electricity supplier with around 2,500 domestic customers and a small number of non-domestic customers is ceasing to trade.
British Gas makes payments totalling £1.73 million for handling of changes to prepayment meter top-up arrangements27/08/2020 13:20:00
British Gas failed to notify around 270,000 prepayment customers about a change of top-up provider, from Paypoint to Payzone, which went live on 1 January 2020.
£1.2 million paid as SSE Energy Services failed to hit smart meter targets21/08/2020 12:20:00
SSE Energy Services missed its target to install gas and electricity smart meters for customers in 2019. Ovo Energy, which acquired SSE Energy Services in January 2020, will pay out £1.2 million for SSE Energy Services' historic issue.
Bulb to pay £1.76 million for compliance issues14/08/2020 13:15:00
Bulb failed to comply with Ofgem’s rules in three separate areas between 2017 and 2020, which affected around 61,000 customers.
Savings on energy bills this winter as price cap falls10/08/2020 13:15:00
The price cap will fall by £84 from £1,126 to £1,042 per year for the winter period (October-March). This is the lowest level of the cap since it was introduced on January 1 2019.
Ofgem publishes price cap decisions ahead of update05/08/2020 10:15:00
Ofgem has today published three decisions relating to the price protection provided to default tariff and prepayment customers following its statutory consultations published in May.