Regulator to review price control

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Ofgem has announced that it is launching a review in electricity distribution price controls in an effort to help consumers.

The regulator's regulations set the amount that energy distribution companies can collect from electricity customers, with current costs standing at around 17 per cent of a typical consumer's bill.

In its first consultation on the review, the organisation has also called on the distribution companies to talk to local communities before submitting their plans for 2010 to 2015.

Ofgem has stated that it hopes the review will "deliver good value" for consumers by ensuring that companies provide quality networks.

The launch of the review has come after a report by the energy regulator called for more information to be made available for electricity customers who want to use microgeneration.

It also found that while energy providers are offering good prices to consumers who want to sell power they have generated, easier access to incentives is needed.

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