Consumer Impact Report Financial Year 2017-18
Reports, plans and updates
- Publication date
Ofgem Annual Report and Accounts 2017-18
This report complements our Annual Report and assesses the benefits that some of Ofgem’s regulatory decisions, taken in the financial year April 2017 to March 2018, are expected to provide or, in the case of compliance and enforcement actions, have provided to consumers.
Ofgem’s principal objective is to protect the interests of Britain’s current and future gas and electricity consumers, including those in vulnerable situations. We do this by delivering benefits to consumers that are based on us achieving the following five strategic consumer outcomes:
- Lower bills than would otherwise have been the case.
- Reduced environmental damage both now and in the future.
- Improved reliability and safety.
- Better quality of service, appropriate for an essential service.
- Benefits for society as a whole including support for those struggling to pay their bills.
Based on our calculations, the decisions covered in the report will result in:
- Net present value of direct benefits: £7,800m
- Net present value of indirect benefits: £8,800m
- Additionally, £540m of reduced funding for network companies.
Ofgem spent £90 million delivering these benefits. This gives a ratio of direct benefits to costs of 87, meaning we expect every £1 we spent to deliver direct benefits of £87 to consumers.
We intend to publish a Consumer Impact Report every year. A summary of this year’s report is included in our Annual Report and Accounts.