Embedding broader values in the regulatory model: An analysis of Ofgem's consumer value proposition for the natural gas distribution sector

Helen Poulter and Ronan Bolton

Utilities Policy, 2023, vol. 80, issue C

Abstract: Customer engagement processes introduced in energy network regulation in Britain have incentivised networks to think beyond economic efficiency. To this end, the regulator introduced a new incentive: the Consumer Value Proposition (CVP), allowing companies to use a monetised metric to gain a financial reward should their investments show additional social and environmental value for customers. Through a case study of the RIIO2 natural gas distribution price-control process, we construct a narrative history of the design and assessment of the CVP initiative. We discuss the challenges of implementing such an approach in practice and embedding it in the regulatory model.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:80:y:2023:i:c:s0957178722001345

DOI: 10.1016/j.jup.2022.101470

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