Former Ofgem director John Howard has been appointed as the chair of SP Energy Networks’ RIIO2 customer engagement group (CEG).
Howard has had a 19-year career in regulated industries and consumer affairs and spent 20 years as a consumer journalist with the BBC.
He was appointed as a non-executive director at Ofgem where he was a member of the energy regulator’s RIIO1 price control committee. Howard also helped formulate the regulator’s definition of consumer vulnerability.
The incoming chairman is a former chair of the independent Financial Services Consumer Panel and now heads up the advisory board of the Transparency Task Force – a worldwide organisation pressing for greater openness in financial services.
Howard said: “The electricity sector in the UK is undergoing a rapid transformation to meet ambitious carbon reduction targets, harness new technologies and facilitate the growth of electric vehicles.
“The electricity networks of the future must operate in a fair, efficient and transparent manner, protecting the interests of all consumers.
“The CEG will be independent but work closely with representatives from SP Energy Networks and the energy regulator Ofgem.”
As part of the RIIO2 price controls set out by Ofgem, distribution network operators (DNOs) are required to set up independently chaired customer engagement groups. This, the industry regulator says, will challenge the business plans proposed by the network companies for the next round of price controls.
As well as the CEGs, Ofgem will establish an independent RIIO2 challenge group to look at plans proposed by the companies. This will operate in parallel with the CEGs.
The regulator has stressed that the CEGs will not be a means of identifying customer needs. Instead, they are there to hold companies to account on whether they have properly reflected local stakeholder requirements.
Frank Mitchell, chief executive of SP Energy Networks, said: “I’m pleased to welcome someone of John’s caliber to chair our CEG.
“We wanted to ensure that the chair would possess two key attributes – senior leadership experience in the energy industry and a strong consumer background. John has an impressive track-record spanning many years in both areas.”
Customer engagement group chairs
- Western Power Distribution – Duncan McCombie
- Electricity North West – Jeff Halliwell
- Scottish and Southern Electricity Networks – Tracey Barlow
- Scottish Power Energy Networks – John Howard
- UK Power Networks – Ann Bishop