RIIO-2 Open Letter Response

In this open letter response [ 300 kb] on the future of energy network price controls, we argue Ofgem should

• Seriously consider models of consumer engagement that could provide detailed scrutiny of energy networks’ business plans;

• Use greater indexation and tougher incentive benchmarks to ensure that networks earn a fair return on investment that represents good value to consumers;

• While supporting the alignment of ED1 and T1 in principle, be mindful of practical constraints on this;

• Review how the IQI and fast-tracking worked in RIIO-1, with the aim of encouraging network companies to submit more efficient costs for outputs;

• Scrutinise whether the 8-year price control length is really delivering the benefits for consumers that network companies have often argued they do.