The independent RIIO-2 Challenge Group, has delivered to Ofgem its report into network companies’ final Business Plans for the next round of price controls. (1)
Ofgem sets price controls for the monopoly companies that operate Britain’s energy networks and wants consumers to have a stronger voice in the process for setting the next price controls.
Ofgem set up the group, made up of consumer advocates - as well as technical, regulatory and commercial experts - to challenge each network company on how its spending plans take into account consumers’ needs and views. (2)
The next set of price controls is expected to result in lower network costs for consumers while enabling the companies to help decarbonise the UK economy to hit the net zero emissions target at the lowest cost to consumers.
The group is independent of Ofgem. Its report is one of a number of considerations that will help inform Ofgem’s assessment of companies’ Business Plans.
The group’s views include:
Ofgem will consult on Draft Determinations on the Business Plans in July before making Final Determinations in November 2020.
The price controls for gas transmission, electricity transmission, gas distribution, and electricity system operator, to which the challenge panel report refers, take effect in April 2021. The price control for electricity distribution begins in April 2023.
Ofgem is holding regional public open hearings this spring, to enable stakeholders to directly challenge companies’ Business Plans.
Ofgem is currently calling on stakeholders to respond to a call for evidence and to participate in these hearings.
Ruth Somerville
Communications Manager
Tel: 0207 901 7460 / 07990 139504