Ofgem’s RIIO-2 misses the mark on workforce resilience

Ofgem has today (7 December 2020) published its updated price control plan, RIIO-2, which sets out what energy distributors such as National Grid are able to invest, and make back, on Britain’s transmission networks from 2021-26.

This is the final document after a draft was published earlier in the year which met with considerable pushback from Prospect and other interested parties. There are still concerns that the spending envelope is too tight for sufficient investment to be made, and for the workforce to be adequately supported.

Sue Ferns, senior deputy general secretary of Prospect, responded to the plan:

“It is welcome that Ofgem has listened to concerns raised by Prospect and others and reversed some of the cuts it had proposed in the previous draft of RIIO-2, particularly in relation to health & safety and training. It is also welcome that Ofgem is allowing more capital spending to support the drive to Net Zero.

“Where there doesn’t seem to have been any movement is with regards to workforce resilience, and with Ofgem still proposing big cuts to company returns, there remains a real risk that companies will underspend on the workforce in order to preserve shareholder dividends.

“There is already evidence that overwork and understaffing is leading to increased stress, low morale and declining safety standards. An adequately skilled, motivated workforce is essential both to providing a proper service to customers and to hitting our climate goals.”