Western Power Distribution takes to RIIO fast track

Western Power Distribution will benefit from lighter-touch regulation in the next price control, Ofgem announced on Friday.

WPD, which covers the Midlands, South Wales and southwest England was the only one of six distribution network companies to win fast-track status in the RIIO process, subject to consultation.

It is promising to cut its rates by an average of 11.6 per cent in 2015/16, or around £11.30 a household in 2012/13 prices. They will then rise by an average of 90p a year until 2023.

The other five distribution network operators will face greater scrutiny and must submit revised plans in March 2014.

Hannah Nixon, senior partner for distribution, said: “We understand that energy costs are a big concern for consumers and we set a high target for demonstrating value for money. We are pleased that nearly all companies have pledged to cut bills, but we feel that most companies can go further in cutting their costs and expect to see further improvements when they resubmit their plans in March.

“Western Power Distribution responded well to Ofgem’s challenge to demonstrate good value and drive improvements for consumers while reducing the distribution part of their bill. I’m very pleased that our new approach to price controls, RIIO, has produced a sea change in how companies approach price controls, with all companies producing a very high standard of business plan that have customers at their heart. WPD was particularly impressive and clearly demonstrated it delivered for consumers on all areas and this is the reason it is eligible for fast-tracking.”

Robert Symons, chief executive of WPD, said: “We are pleased with the recommendation made by Ofgem which reflects on our forward business plan submission and recognises our long-standing reputation for delivering operational and customer service excellence.”