Ofgem sets up independent panel to challenge network company business plans for the next price controls
Press release
Publication date
Industry sector
- Distribution Network
- Transmission Network
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Ofgem has established an independent panel which will challenge the business plans developed by the energy network companies for the next price controls which will start from 2021.
Ofgem sets price controls for the monopoly companies that operate Britain’s energy networks. The next set of price controls is expected to result in lower network costs for consumers while allowing the companies to respond to challenges including accommodating electric vechiles and other new technology.
Ofgem wants consumers to have a stronger voice in the process for setting the next price controls. The panel will challenge each network company on how consumers’ needs and views are being taken into account as it is developing its business plan. The panel will produce an independent report for Ofgem on its views of the companies’ plans.
To further increase scrutiny of the business plans Ofgem will hold open hearings in the spring of 2020 where the companies will be questioned on areas of contention raised by the panel as well as other stakeholders, once the plans have been submitted.
Roger Witcomb, who led the Competition and Markets Authority’s investigation into the GB energy market, will chair the panel. Panel members include consumer advocates as well as technical, regulatory and commercial experts.
Jonathan Brearley, Ofgem’s executive director for systems and networks, said: “Consumers deserve robust and cost effective business plans from energy network companies. The advice of the challenge panel will help us assess whether the plans deliver the services that customers expect from the networks in the next decade.”
Roger Witcomb said: ”Energy networks play a vital, and increasingly important role in a smarter energy system. I am looking forward to working with the other panel members to make sure that the companies are putting consumers at the forefront of their plans for managing the major changes in how we generate and use energy.”
Notes to editors
- The energy transmission and gas distribution companies are in the process of developing their business plans. The challenge panel will meet each company and scrutinise its plans. When each company submits its final business plan to Ofgem in December 2019, the panel will provide a view to Ofgem on each submission. After assessing the plans Ofgem will hold open hearings, consult and make final determinations on the companies’ spending allowances at the end of 2020. Network companies recover the cost of investing in, operating and maintaining their grids from charges to consumers on energy bills.
- See more information about the panel members and the panel’s work.
- Read more about Ofgem’s plans for the next price controls here.
- See fast facts about GB energy networks and Ofgem’ role in regulating them here.
Further information
For media, contact:
Chris Lock: 0207 901 7225
Media out of hours mobile: 07766 511470 (media calls only)
For investors, contact:
Martin Young: 0207 901 7114
About Ofgem
Ofgem is the independent energy regulator for Great Britain. Its priority is to make a positive difference for consumers by promoting competition in the energy markets and regulating networks.
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