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"It is already clear that one of the big issues for RIIO2 will be how SGN deal with the challenge of decarbonisation and the current policy uncertainty in that space." MAXINE FRERK NETWORK / 14 / MARCH 2019 STAKEHOLDER ENGAGEMENT O ne of Ofgem's aims for the RIIO network price controls is to give a stronger voice to consumers. In normal markets companies have to focus on what their con- sumers want, otherwise they won't survive. In regulated monopolies that doesn't apply – consumers have no choice about the energy network they use. Histori- cally regulators were seen as taking on the mantle of the consumer in such cases – set- ting prices and service standards. But it's not clear why the regulator should be well placed to judge what consumers want or would be willing to pay for in terms of service. Hence regulators are now looking at how to get the companies to focus more on end consum- ers – in their day-to-day operations and in the proposals they come forward with as part of the price control process. The idea was introduced in the • rst RIIO price controls 10 years ago, requiring companies to set out how they had engaged customers and stakeholders in develop- ing their plans. The water sector took this one step on with a requirement for every company to set up a Customer Challenge Group to test how they are engaging with customers and how that evidence feeds into their plan – and to report to Ofwat on their conclusions. Ofgem have adopted that idea for RIIO2 which is kicking o„ now. The dis- tribution networks have to have Customer Engagement Groups comprising primarily of consumer advocates while the transmis- sion companies have to have a broader user group. I chair SGN's Customer Engagement Group (CEG) which had its • rst meeting in September and is now starting to motor. We are quite a large group as we are looking to cover the di„ erent interests of consumers in Scotland and the South. We have a broad mix of backgrounds and skills but inevita- bly this means that quite a bit of time has been needed to get everyone up to speed on all the di„ erent dimensions we're cover- ing, from the details of the RIIO regulatory framework through to the nature of gas dis- tribution and the successes and challenges Making customers matter Editorial board member Maxine Frerk discusses the role of customer engagement groups and the progress being made in this area at SGN. MAXINE FRERK