Select Committee on Environmental Audit Appendices to the Minutes of Evidence

Annex A

Letter to Rosa Wilkinson, Head of Regulatory Liaison (Gas & Electricity), DTI from Managing Director, Customers and Supply, Ofgem


  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  The Authority regards the draft guidance as broadly appropriate given the statutory framework within which it has to operate.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 provision."

  In a few areas the Authority suggests that the draft guidance should be updated to reflect developments since the consultation was issued, or that the order of certain topics could be slightly adjusted.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.

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