Ofgem is exploring alternative models for how it regulates the network companies. We agree that the pace and scale of investment needed in electricity networks means new approaches may be needed. However we are concerned that this sort of radical review risks creating a hiatus when we do not have the time.
We welcome Ofgem’s consultation on approaches to local energy institutions and governance but would like Ofgem to think more deeply about the practical reality that local actors face in delivering net-zero. This includes Ofgem taking a far broader view of what ‘good outcomes’ look like in an energy world where place matters. We also want more discussion on how the Future System Operator is best-suited to the role of regional energy-system planner and market facilitator.
Ofgem is seeking views on the Annual Environmental reports that the Distribution Network Operators must produce. We want more emphasis on ensuring there is consistency in what figures are reported and want more detail on what companies are doing on potent greenhiouse gas SF6 and energy losses.
We agree with Ofgem that prepayment is a preferred payment method for many consumers given the budgeting control it offers. We are not in favour of a ban on prepayment provided suppliers are behaving responsibly, provide good service, are treating customers fairly and complying with their licence obligations.
One of the factors that is important in Ofgem's calculation of the price cap for Economy 7 customers is the assumption on the split between day and night usage. We are concerned that updating this one aspect in isolation could have adverse consequences. We would therefore like to see wider review of Economy 7 customers in the price cap.
We are pleased to see specific reference to Economy 7 customers in your latest Call for Input, but are concerned that Ofgem is only proposing to look at the narrow question of “additional wholesale allowances”. As set out in the It's a Lottery report, by Gridge Edge Policy, the concern for Economy 7 customers relates to total wholesale costs
We are very struck that nowhere in the consultation is there any discussion of the impacts of the proposed changes on Profile Class 2 (multi-rate) customers, who pay different amounts depending on when they use energy. It appears that changes could have a bigger impact on these customers than it does on customers on a standard rate tariff.
In our latest consultation, we are disappointed that Economy 7 customers did not feature in Ofgem's programme of work for the price cap which it is currently consulting on. We strongly believe it should, as such customers account for 10% of all households
In our submission to Ofgem on Future Systems and Network regulation, we highlight four areas that we think the regulator needs to address. Firstly, the need for investment given the significant challenges around net zero and the demands of national energy security; secondly managing uncertainty around the role of hydrogen and heat decarbonisation; thirdly the importance of adaptive planning and lastly strengthening the networks’ role on social and environmental issues
To provide you with the best online experience this website uses cookies.
Registered Charity no. 1078994 | Company no. 03897720 | Privacy and Data Policy
Site content: Sustainability First 2022 | Site Build: David Sheales