Distribution network operators given shock

Britain’s energy watchdog has warned electricity distribution network operators they could have their revenue slashed if their customer service does not improve.

Ofgem said yesterday that six electricity distribution network operators (DNOS) are failing to engage effectively with new larger customers requesting connections to the grid.

As a result the DNOS – Electricity North West, Northern Powergrid, Western Power Distribution, UK Power Networks, SP Energy Networks, Scottish and Southern Electricity Networks – face their revenue being cut by £13.9 million.

Ofgem said: “Failure to meet minimum expectations can lead to a financial penalty. Following feedback from customers to our consultation in July, our view is that all DNOS may have fallen short of these expectations.

“In general DNOS seem to be improving their engagement and services but some specific issues raised by stakeholders remain unaddressed. As a result, each of the DNOS faces a reduction in its revenue.”