The electricity network includes over 800,000 km of electricity cables which connect households and businesses to sources of energy generation. Network costs account for roughly one quarter of the typical household electricity bill. In 1990 the network was privatised and divided among several private companies. Ofgem, a non-ministerial government department, is tasked with regulating these companies to protect the interests of consumers. The Department for Business, Energy and Industrial Strategy (BEIS) has overall responsibility for energy policy and ensuring the UK has a reliable, low cost and clean energy system. In 2013, Ofgem implemented a new regulatory framework which is intended to provide strong incentives for network companies to meet the challenges of delivering a low carbon, sustainable energy sector at value for money for consumers.
We will report on:
- whether regulation of the network companies has achieved value for money over the current regulatory period
- whether BEIS and Ofgem’s oversight and regulation of networks is set up to deliver value for money in future