Electricity distribution price control: consumer views

Publication type:
Research
Publication date:
Topic:
Electricity distribution,
Energy network price controls

Findings on how consumers understand the energy sector, electricity networks and electricity distribution network operators (DNOs).

Main points  

  • Consumers were concerned about affordability of energy bills, with high and rising energy bills causing anxiety and changing how they engage with the energy sector.
  • Initial awareness of distribution network operators and the wider energy system was very low, which meant that consumers were unable to assess performance or value for money.
  • There were themes raised by consumers on affordability, low awareness and distrust in the energy sector.
  • After learning about distribution network operators, consumers recognised them as playing an important role and were surprised they had not heard of them before.
  • Support for investment was stronger when consumers thought the changes were likely to happen and the benefits were clearer.
  • Willingness to accept bill increases depended on fairness, with strongest support for investments benefiting all consumers and least for investment seen to favour the more affluent.

Methodology

We set up a consumer panel for the electricity distribution price control (ED3) to ensure consumer voice is central throughout the development of ED3 policy and decision making. This report is based on findings from the first wave of the consumer panel.

The research employed a qualitative, deliberative approach. Deliberative research involves participants learning about a topic as the basis for more informed discussion, rather than expressing views based on lack of knowledge, misunderstandings and assumptions.

Panellists took part in two online workshops. Between the workshops, they also completed a short online exercise to supplement learning.