Network operators were allowed to benefit at the expense of customers after Ofgem failed to enforce tougher price controls under RIIO-1, a government watchdog has concluded.
Following the release on Friday 24 January of Ofgem’s RIIO-2 Challenge Group report, companies have reacted to the claim they are not being proactive enough.
With the finalised framework for RIIO-ED2 released yesterday, the industry has praised Ofgem’s commitment to decarbonisation whilst pointing to the possibility of "going further".
National Grid Electricity System Operator (ESO) has submitted it’s Business Plan for the RIIO-2 period to Ofgem, outlining its plans to operate a carbon free, balanced system while lowering consumer bills.
There is still a "long way to go" in the transition from DNOs to DSOs, but if the incentives are set up right within the regulations, it will “drive the culture” of the networks.
