Citizens Advice has responded to Ofgem’s consultation on its next round of price controls for energy network companies. The ‘RIIO2’ framework will set the level of energy network company profit over a five year period.
Last year, Citizens Advice revealed how, due to errors in forecasting the companies’ business costs, energy network companies are on course to make £7.5bn in unjustified profits over the current price control.
Gillian Guy, Chief Executive of Citizens Advice, said:
“Today’s announcement is a major step forward. These proposals should prevent a repeat of the billions in excess profits energy network companies are making under the current price controls. This means better value for consumers and potentially lower bills.
“The outcome of this consultation will be the acid test for Ofgem. It’s crucial that the regulator holds its nerve and sees through these changes.
“Curbing the ability of energy network companies to make excessive profits, limiting the price control to five years, and ensuring a greater voice for consumers are all measures that should take us closer to a towards an energy market that genuinely works for consumers.”