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.”
(1) 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.
