Commenting on Ofgem’s publication of the latest consultation on price controls for energy network companies, David Smith, CEO of Energy Networks Association, says:
“Energy networks are the nerve-centre of a smarter, cleaner energy market, responsible for delivering a range of exciting new services for our homes, businesses and communities. Balanced regulation is fundamental to delivering these and the price control system should evolve to suit the changing needs of consumers. RIIO-2 must deliver that whilst being founded on the principles of transparency and stability to provide predictability for investors, innovators and consumers alike.
“We will be working through the proposals announced today, including Ofgem's opening view on what the cost of equity should be. Customer Engagement Groups will build on our strong track record of customer satisfaction, a greater focus on a whole system approach will help reduce the costs of decarbonisation and maintaining the innovation incentives will be critical to extending Britain’s world leading track record in this area. Network companies look forward to building on the strength of their existing track record under the new price control and working closely with Ofgem in the weeks and months ahead.”