Speaking at a Utility Week conference in Birmingham today, Ofgem senior manager of smarter grids and governance Robert Beavis told delegates: “If our projections going forward are correct, that would mean that the average payment for gas distribution services in a consumer bill will move from £141.02. At the end of the price control , that will be coming down by 5.5 per cent to £133.”
“There’s a success story here, that would be really good news and, of course, this sets the benchmark for future price controls.”
Beavis said the gas distribution companies had so far “outperformed” their allowances under RIIO-GD1, by carrying out services for lower than the price control allowed. “This means they get a 64 per cent slice,” he added. “And consumers get a 36 per cent share of that as well, so good news for consumers.”
Overall, distribution charges currently make up 16 per cent of a consumer bill, with transmission charges accounting for 2 per cent of a gas and 4 per cent of an electricity bill. The RIIO-GD1 price control was implemented in 2013 to “drive benefits for consumers”.
The RIIO model provides companies with incentives to deliver a low-carbon, sustainable energy sector at value for money for consumers.
Beavis also noted that level of customer satisfaction with the gas distribution networks was on the up. “In terms of customer complaints, all met their target scores, and things seem to be improving,” he said.
“It’s very encouraging that, in terms of customer complaints, where there is a fairly bad reputation across the utilities, the gas networks are doing very well. The levels are low and, essentially, there is improvement going on and it’s not taking long to resolve complaints. Only 6 per cent actually exceed 31 days .”