27th Mar 2015 12:47
LONDON (Alliance News) - UK gas and electricity regulator Ofgem Thursday said it is consulting with network companies in an attempt to get them to connect "fuel poor consumers" to the gas grid as it offers customers the cheapest option.
Following a review of the Fuel Poor Network Extension Scheme, Ofgem believes gas network companies, which includes FTSE-100 listed National Grid PLC, can connect more eligible households to the gas grid than the original 77,000 households due to be connected between 2013 and 2021.
Ofgem has now told the network companies that they must resubmit their plans under the scheme for Ofgem to consider.
Where a gas connection would not offer the best value for consumers, Ofgem wants network companies to work with organisations such as fuel poverty groups and suppliers to assist fuel poor consumers, said the regulator.
"By encouraging gas network companies to connect more consumers to the gas grid, we?re playing our part in supporting those in fuel poverty in Great Britain," said Maxine Frerk, senior partner for distribution at Ofgem.
Ofgem also said it wants to extend the scheme to support more vulnerable and low income households, and said it is consulting with network companies about making amendments to the scheme to reflect this. The consultation is open until June 18, 2015, and the revised scheme is due to be in place from April 1, 2016.
"We also want network companies and their partners to work more closely with suppliers and fuel poverty groups on improvement works, such as new boilers, radiators and internal pipework, to ensure consumers get the full benefit from the new connections provided by the scheme," said Frerk.
In addition, Ofgem said it is reviewing the criteria for what constitutes an eligible consumer to receive assistance from energy companies to ensure that the right people get the help they need. The Priority Service Register outlines eligible consumers that are of pensionable age, disabled or chronically sick that can get additional help.
"Ofgem also wants to see improved awareness of the register and data sharing between energy companies to ensure vulnerable consumers are better identified," it said.
The other gas network companies affected by Ofgem's decision are Northern Gas Networks Ltd, Wales and West Utilities Ltd and Scotia Gas Networks Ltd.
National Grid shares were down 0.1% to 881.50 pence per share on Friday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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