Letter to Rosa Wilkinson, Head of Regulatory
Liaison (Gas & Electricity), DTI from Managing Director, Customers
and Supply, Ofgem
OFGEM: DRAFT SOCIAL AND ENVIRONMENTAL GUIDANCE
Thank you for your letter to Callum McCarthy
of 8 May. This letter provides the Authority's response to the
statutory consultation launched on that day.
The Authority regards the draft guidance as
broadly appropriate given the statutory framework within which
it has to operate. Its one substantive comment is that the drafting
of the important statement in the first sentence of paragraph
1.2 about the costs of social and environmental measures could
with advantage be made clearer. Our proposal is that the following
be substituted for this sentence: "The Government regards
Ministers, rather than Ofgem, as responsible for developing any
social or environmental measures which would have significant
financial implications for consumers or for the regulated companies.
Ministers will implement such measures by means of specific legal
In a few areas the Authority suggests that the
draft guidance should be updated to reflect developments since
the consultation was issued, or that the order of certain topics
could be slightly adjusted. These suggestions are attached.
We would very much welcome the opportunity to
discuss these matters, and the views of other respondents, before
the guidance is finalised.