ENA chief executive David Smith hit back at the report which criticised Ofgem for not yet delivering value for energy consumers in its networks regulation, saying: “For 81 pence a day customers get one of the most reliable energy networks in the world at one of the lowest costs in Europe.”
The ENA said the cost of Britain’s networks has fallen 17 per cent in real terms since privatisation, and investment of almost £80 billion has secured safer, more reliable and more efficient infrastructure.
Smith added: “Network companies are focused on delivering increased stakeholder engagement, raising their profile with customers and widening competition.”
Commenting on the ECC’s report, Accenture said restricted investment on upgrading and maintaining Britain’s power networks could result in poor infrastructure, ultimately leading to service interruptions or outages and having a negative impact on the consumer in the long-term.
In the report, published today, ECCC chair Tim Yeo said there is “clear evidence” that network companies are making higher profits than expected and warns that price caps set by Ofgem have been “too generous and performance targets too low”.
ECCC called for an independent audit of the price controls, stronger corrective measures for companies receiving incentive payments for reducing energy leakages when such reductions have not taken place, and increasing the notification period network companies must allow for price changes to 15 months.