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Decision on the Stakeholder Engagement Incentive 2017-18: Transmission and Gas Distribution

The Stakeholder Engagement Incentive drives network companies to engage effectively with stakeholders to inform how they plan and run their businesses.

This letter sets out Ofgem’s decision and company feedback on the gas and electricity Transmission Operators and Gas Distribution Network Operators Stakeholder Engagement Incentive for 2017-18

The Chair of the panel assessing stakeholder engagement of TOs and GDNs noted a number of issues positive and negative.  This included

While some companies were more outcomes-focused this year, rather than just thinking about outputs, there is still room for further improvement in this respect

There was a lack of partnership approaches from some companies and there still seems to be a lack of understanding around who is considered ‘hard-to-reach’. GDNs and TOs should ensure they have considered who their hard-to-reach stakeholders are and aim to provide clear examples of how they have engaged with these groups.

The panel felt that demonstrating costs, benefits and value for money remain poor. While this does not always have to be financial or quantitative, it should be highlighted wherever possible and the companies should explain how the benefits relate to the costs incurred as part of the project

Although Cadent received the largest reward  in absolute terms (£3.54m) the highest performer by score was Scottish Power Transmission.


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