The energy regulator Ofgem has today published its final proposals for its price control for the next five years for gas transmission, electricity transmission, gas distribution and the electricity system operator in Great Britain.

NEA has today welcomed Ofgem’s decision to ensure all energy suppliers across Great Britain provide more support for customers struggling in debt, identify pre-payment customers who run out of credit and offer appropriate forms of advice and support.

NEA has extensively engaged with Ofgem the DNOs to help shape this price control, through stakeholder meetings, workshops, and through working with Ofgem in the RIIO 2 working groups. NEA is so far pleased with Ofgem’s approach in the ED2 price control, especially the increased focus on stakeholder engagement and vulnerability. We believe, however, that there are several areas that require closer, additional consideration.

In 2012, NEA developed a scoping study with Ofgem to explore how well-placed network companies are to deliver social action cost-effectively and support the alleviation of fuel poverty. Throughout ED1 and GD1, NEA has worked with Ofgem and the network companies to embed many of the recommendations and cultivate several projects which support low income and vulnerable households.

NEA response to Ofgem’s self-disconnection and self-rationing final proposals

It is imperative that prepayment meter (PPM) customers continue to receive protection. It is therefore clear that the prepayment cap must continue after its upcoming termination in the form of a CMA regulated cap.

NEA recognises that many low-income households experience affordability issues with their essential household bills, rarely struggling with one bill in isolation, and as a result is delivering a programme of work which seeks to support ‘People Living in Water Poverty and Fuel Poverty’.

It is imperative that prepayment meter (PPM) customers continue to receive protection. The CMA stated in its initial ruling of the energy market investigation that PPM customers have higher actual and perceived barriers to switching that arise from both lack of internet connectivity and the need to physically change meter to switch to a wider range of tariffs.

Over the last year, NEA, alongside other consumer groups, worked with Ofgem to secure some key improvements in the treatment of domestic customers. In particular, we worked to ensure that low income and vulnerable customers had adequate protections in gas and electricity markets.