Citizens Advice responds to Ofgem initial policy consultation on Proposed Opex Escalator (OE) Review Mechanism
Citizens Advice does not believe Ofgem’s current proposal to introduce the review mechanism for the opex escalator for RIIO-T2 is in the interests of consumers.
Overall, we are concerned with Ofgem’s proposed approach to introduce a mechanism that isolates one component of the price control and can only be used, if successful, to increase allowances.
We believe this fails to recognise that there are also equivalent risks to consumers that companies have been over funded elsewhere due to the inherent nature of price controls. Ofgem should, instead, approach the risks of under funding and over funding, equitably.