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 publishes decisions on COVID-19 related and smart meter allowances for energy price cap05/08/2021 15:15:15
Ofgem has published its decision not to include an additional allowance in the next cap period (October 2021 – March 2022) for debt-related costs relating to COVID-19.
Energy bills are rising – and what you can do about it29/07/2021 15:15:15
Blog posted by: Jonathan Brearley, Ofgem Chief Executive, 27 July 2021.
We need a revolution in how and when we use energy26/07/2021 13:15:00
Last week [July 20] the Government and Ofgem published a plan that will help revolutionise how we all use and pay for energy not just how we generate it.
Smart technologies and data to future-proof UK energy20/07/2021 13:12:00
Unleashing the full potential of smart systems and flexibility in our energy sector could reduce the costs of managing the system by up to £10 billion a year by 2050, as well as generate up to 10,000 jobs.
Fairer energy deals for microbusinesses30/06/2021 13:15:00
Blog posted by: Anna Rossington, Interim Director (Retail), 29 June 2021.
Microbusiness customers to get better energy deals02/06/2021 14:05:00
Ofgem, the energy regulator, has set out final proposals to help millions of microbusiness customers get a better energy deal
Ofgem delivers £300 million down payment to rewire Britain24/05/2021 15:05:00
Ofgem is today powering the electric vehicle revolution, with motorway service areas and key trunk road locations across the country set to get the cabling they need to install 1,800 new ultra-rapid charge points, tripling the current network.
One in four consumers plan to buy an electric car in next five years according to Ofgem research24/05/2021 13:15:00
Ahead of Ofgem’s launch of its COP26 ‘green, fair future’ campaign, new research has found that almost one in four (24%) consumers plan to buy an electric vehicle or plug-in hybrid in the next five years.