In 2006 Ofgem introduced the Electricity Distribution Customer Service Reward, a new initiative to recognise and reward distribution companies that demonstrate best practice for consumers in areas that cannot be easily measured or incentivised through more mechanistic regimes.
The scheme achieves this by recognising outstanding performance and beacons of excellence within the industry and driving innovation and creativity through the promotion of best practice. The scheme is designed to reward the performance of those distribution companies which best serve the interests of customers across the chosen categories throughout the reward period, particularly those which exceed their licence requirements and have a holistic approach to these areas embedded in broader business processes, not necessarily 'flagship' projects or one-off initiatives.
The scheme focuses on three broad categories:
- priority customer care initiatives,
- initiatives relating to corporate social responsibility, and
- wider communication strategies.
Each year, a total reward of £1 million is available across the chosen categories. Entries from distribution companies are judged by a multidisciplinary independent panel.