More support for fuel poor and vulnerable households with new Ofgem targets for gas network companies

Press release
Publication date
Industry sector
Supply and Retail Market
Distribution Network
  • Network companies to deliver 18 per cent more fuel poor connections in current price control
  • Gas Distribution Networks will now connect over 90,000 fuel poor customers to the gas grid by 2021 during the RIIO-GD1 price control.

Changes to the Fuel Poor Network Extension Scheme, announced today by Ofgem, will help reduce the number of households in fuel poverty by encouraging gas network companies to increase connections of eligible households to the grids they operate. The changes, including a number of revisions to the scheme, which will come into effect from 1 April 2016, are expected to deliver in total over 90,000 fuel poor connections between 2013 and 2021.

The Fuel Poor Network Extension Scheme is delivered through Ofgem’s RIIO-GD1 price control and helps fuel poor and vulnerable households to switch to natural gas by helping towards the cost of connecting to the gas network, where this is the best solution for the eligible household.

Maxine Frerk, senior partner, smarter grids & governance distribution, Ofgem, said: “Reducing the number of households that are in fuel poverty remains one of the most important energy challenges that we face in Great Britain. Gas is still one of the least expensive sources of energy, and getting connected to the grid and having access to gas can make a real difference to the living standards of those in fuel poverty.

“We are committed to ensuring that we use our price control mechanism to encourage network companies to help fuel poor households connect to gas wherever that is the right solution for that customer. These new targets and the revisions to the Scheme build upon the success of the scheme in previous price controls and will deliver significant benefits to fuel poor and vulnerable consumers.”

“We also want network companies and their partners to continue to work more closely with suppliers and fuel poverty groups on improvements works, such as new boilers, radiators and internal pipework, to ensure consumers get the full benefit from the new connections provided by the scheme.”

Notes to editors:

  1. The Fuel Poor Network Extension Scheme enables households that are eligible for assistance to switch to natural gas, by helping towards the cost of connecting to the gas network where this is the right solution for them.
  2. The scheme is delivered by the Gas Distribution Network operators. It was introduced in the previous price control period (GDPCR 1, 2008–2013) during which the GDNs connected 43,615 fuel poor households. Ofgem has reviewed the scheme as it was committed to doing so during the RIIO-GD1 price control. The scheme will continue until at least 2021. Ofgem has made some changes to the Scheme and also increased the RIIO-GD1 connections targets for the GDNs from 77,450 to 91,203. The changes to the Scheme will take effect from 1 April 2016.
  3. Ofgem also today published its decision, to allow an additional £656 million of efficient costs for National Grid’s gas and electricity transmission businesses and two gas distribution companies for a number of pre-defined activities in their relevant price controls. The network companies originally requested an additional £833 million. These additional requirements were not defined at the time of setting the price controls and hence specific provision was made for these items to be determined later. We have also disallowed £56 million of National Grids costs from the previous transmission price control.

Previous press release on this topic.

Applications for additional expenditure under the price controls were received to fund upgrades to physical security at sites designated as critical national infrastructure have been allowed , as have applications to fund streetworks. A further application for additional expenditure to meet industrial emissions targets has been disallowed. 

About Ofgem

Ofgem is the independent energy regulator for Great Britain. Its priority is to make a positive difference for consumers by promoting competition in the energy markets and regulating networks.

Follow us on Twitter @ofgempress

For further press information contact:

Chris Lock:              020 7901 7225
Out of hours media contact number:  07766 511470