Electricity distribution customer service reward scheme

Ofgem letter (6 pages, PDF) proposing a structure for a discretionary reward scheme under which customers of electricity distribution companies deemed to have performed well in implementing "initiatives" in specified areas of customer service, and/or a "holistic approach to these areas", would be required to pay higher charges. The total charge would be limited to £1 million a year across Great Britain.

Ofgem's proposal is to develop a "standard application form" which DNOs wishing to collect a reward would need to complete in each year, setting out the relevant "initiatives" that they had undertaken. The application would need to be supported by two or three "stakeholder organisations". A panel of people drawn from Ofgem, industry and consumer organisations would consider these applications and make a recommendation to Ofgem as to which DNOs should receive a reward under the scheme (if any). The final decision would be at the discretion of the Ofgem board. Responses and suggestions for panel members by Friday 9 December 2005.

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, Ofgem, Price controls.

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