Citizens Advice responds to RIIO-3 Draft Determinations

Citizens Advice responds to RIIO-3 Draft Determinations 882 KB

RIIO-3, covering electricity transmission and the gas distribution and transmission sectors, will see a huge amount of system change. In the period we will hit 2030, by which time the Clean Power 2030 Action Plan aims to have delivered a clean energy system. This will require the biggest investment in the electricity transmission system since privatisation, potentially reaching over £80 billion. At the same time, the gas networks will need to maintain a safe and reliable service whilst anticipating a declining cost base and remaining flexible to potential changes in government policy, such as the decommissioning of large parts of the network.

The investments planned in RIIO-3 are important for consumers. They will pay back in both the reduction of constraint costs and the enabling of clean power, reducing the sensitivity of energy bills to global gas markets. This period is also likely to see more public scrutiny than ever. We have seen several failures in the water sector result in an all-time low in consumer trust - this should serve as a cautionary tale for the energy sector. This investment needs to be delivered at value for money to maintain public confidence in regulatory arrangements. We believe the proposals are too generous to the network companies and so, by eroding consumer trust, put future investment at risk to the detriment of consumers.