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To protect the non-household water sector from systemic retailer failure Ofwat has said changes will be made to the price cap from April 2022 if the level of customer bad debt exceeds two per cent
3 years ago
Ofgem’s director of networks has told a Utility Week conference the premium National Grid is paying to acquire Western Power Distribution (WPD) proves the regulator’s case on cost of equity.
Bristol Water has questioned what economic regulation needs to look like for the future and how to better include stakeholders in price reviews to build customer trust in the process
Ofgem has given final approval to a modification of the Uniform Network Code that will reinstate the short-haul discount that was previously removed as part of an overhaul gas transmission charges. UNC728B will provide a discount of between 10 per cent and 90 per cent on gas transmission charges for users connected within 28 kilometres of an entry point to discourage them from constructing their own pipelines to bypass the network.
An environmental NGO has called for government to end its obsession with lower bills and allow the water sector to properly invest in infrastructure. The Salmon and Trout Conservation group asked government to remove obstructions that prevent the Environment Agency from monitoring polluters
Ofgem’s latest annual survey measuring consumer attitudes has revealed a significant increase in the number of customers who perceive the chance of their new supplier going bust as a main risk of switching. It is now ranked fourth in the list of perceived risks of changing supplier. Adam John delves into the survey results.
The Competition and Markets Authority (CMA) has pushed back the deadline for its decision on the appeals by transmission and gas distribution networks against their final determinations for the RIIO2 price controls. The deadline for redeterminations is now set for 30 October 2021.
Ofgem has announced plans to postpone the scheduled update of typical domestic consumption values (TDCVs) for gas and electricity consumers to assess the impact of the pandemic. Since 2013 Ofgem said domestic consumption has been on a “consistent decreasing trend”. However, due to millions of people being forced to work at home, early indications suggest there has been an increase since the first national lockdown in March 2020.
A new report commissioned by Ofwat has said the introduction of a B-Mex incentive, to measure end consumer satisfaction with non-household water providers, could “fill important gaps” in the existing regulatory framework. Ofwat is considering the recommendations of Europe Economics including running a pilot version from April 2022 ahead of potentially implementing the mechanism at the next price review in 2024, or via a different framework.
As the UK moves towards net zero, there is growing feeling that some form of new regulatory methodology and settlement will be needed in order to deliver on these decarbonisation commitments. As part of Utility Week’s Countdown to Cop series, two experts from PA Consulting outline what they believe should be included in a new regulatory settlement.