Giving evidence to the Energy and Climate Change select committee (ECCC), Andy Manning, head of network regulation at British Gas, said there needed to be “detailed independent analysis” on the returns made by the networks.
He added that the NAO would be “an appropriate body to do this”.
Manning said that networks were “able to consistently outperform their targets” and were therefore being rewarded, even though they may have been one of the poorer performing below average compared to the other distribution network operators (DNOs).
He added: “To ape a competitive market we should see the high performing networks prospering and the poor performing networks struggling and that isn’t what we’re seeing.
“So we feel that the expertise needed to pull that apart needs to be an independent third party.”
ECCC chair Tim Yeo, said this was a result of “the feebleness of the regulator” and questioned UK Power Network (UKPN) chief executive Basil Scarsella as to whether electricity customers would be satisfied that “even the worst performing DNOs are rewarded as if they have above average performance”.
Scarsella responded that the regulatory regime does work because it allows poor performing networks to be penalised and good performing networks to be rewarded, and consumers would be “very satisfied”.
He added: “When I look at my network, and the other networks, the reliability has improved, customer service has improved, and costs have decreased, so it’s only right they are rewarded.”