Ofgem’s response to appeals by British Gas and Northern Powergrid on RIIO-ED1 price control decision
Press release
“Ofgem’s priority is to protect consumers’ interests. We have put in place a robust set of proposals, RIIO-ED1, which will reduce electricity distribution costs for energy customers while improving network reliability. We stand by our decision and will work with the Competition and Markets Authority (CMA) as it considers two appeals. These appeals come from opposing directions, with one believing our decision was too tough and the other saying we could have been tougher. Ofgem believes our decision delivers the right balance between ensuring value for money for consumers and investment for a reliable network.
“We have a strong track record of protecting consumers by keeping network costs down while enabling essential investment in Britain’s energy infrastructure. As a result of our regulation, Britain’s energy network is 17% cheaper in real terms than 25 years ago, £80 billion of investment has been secured and reliability has improved by 30%.”
For more information on network costs see our infographic and video below.