Our work to pull together our RIIO-2 business plans for gas and electricity transmission is continuing at pace, as we get closer to Ofgem’s deadline for our first draft submission on 1 July.
In February, we consulted our stakeholders on what they want in our RIIO-2 business plans and suggested how we might address their feedback. We’ve just received the responses to this consultation and I want to give you an update on what our stakeholders said.
Most of the 47 gas and electricity transmission respondents found our consultation to be relevant to them and nearly all respondents found the consultation to be clearly written. The main themes in the responses were:
- We should be improving the environment in our RIIO-ET2 plan.
- We should continue or expand our approach to reducing the visual impact of our assets.
- There was strong support for our approach to customer engagement.
- We should improve our customer service further in the RIIO-2 period.
In my last update, in mid-March, I explained that we had just submitted our response to Ofgem’s RIIO-2 regulatory framework proposals. We said that Ofgem’s proposals were a step in the right direction, but that they would not bring about the networks needed for a rapidly changing energy system and were therefore not in the long-term interests of consumers.
There has been a lot of interest in Ofgem’s consultation – attracting more than 100 responses, with around 20 consultant reports submitted around its unprecedented cost of capital proposals. We expect Ofgem to publish its decision document on its RIIO-2 methodology in late May.
We are continuing to work closely with our independent stakeholder user groups – we’ve started to send them parts of our 1 July business plan to review and comment on. We’ll get feedback from their next meeting on 16 and 17 April, which we will then take into account as we improve our draft business plan. We are building towards sharing our draft business plans with our stakeholder user groups in mid-June ahead of submission on 1 July.
It’s important that we continue to engage with our stakeholders and consumers. We recently received the results of our survey on electricity consumers’ willingness to pay for improved services, such as reducing the length of blackouts, putting overhead lines underground and supporting local communities. We will use this evidence to make sure our business plan proposals reflect the value consumers attach to service improvements.
At the leadership event earlier this month, I explained that Ofgem signalled from the outset that RIIO-T2 was going to be a tougher price control. We are creating opportunities for RIIO-T2 now through our submission plan, and our success in RIIO-T2 will come from delivering well for our customers.
I would like to thank all of you for your support and effort to bring the draft plan together for the 1 July submission date.
You’ll find more information about the independent groups involved in the RIIO2 process on our website: Electricity Transmission Stakeholder User Group; Gas Transmission Stakeholder User Group; RIIO2 Challenge group.