Citizens Advice has updated its review of the RIIO-2 price controls to include 2024/25, it announced on 6 July 2026. The charity, which is a statutory consumer body for energy, estimates that network companies have received excess returns worth around £5 billion up to 2025, and that the figure will rise over the rest of the price control period1.
The updated figures put the windfall at almost £6 billion by 2026 and between £6.3 billion and £7 billion by 2028, depending on what happens to inflation1. Citizens Advice attributes the sums to inflation running higher than long-term expectations, which it says has created a mismatch between the allowances networks are given to cover debt costs and their actual debt costs1.
The charity states that network companies remain able to systematically outperform the level of shareholder returns that Ofgem determined was appropriate1.
"The windfall has arisen due to inflation being higher than long-term expectations, which has led to a mis-match between allowances networks are given to cover debt costs and their actual debt costs."
The review sets the windfall alongside household energy debt, which Citizens Advice says has now reached around £5 billion owed by households to their suppliers, a similar figure to the unearned gains it identifies for network companies1. The charity says that because network companies have been inadvertent beneficiaries of the cost of living crisis, they have an obligation to support those still suffering its worst effects through voluntary commitments1.
| Measure | Citizens Advice estimate |
|---|---|
| Excess returns to 2025 | Around £5 billion |
| Expected by 2026 | Almost £6 billion |
| Expected by 2028 | Between £6.3 billion and £7 billion |
| Household energy debt | Around £5 billion |
Why it matters for households
Network costs are recovered through the charges that appear on household electricity and gas bills, so the returns companies earn under the RIIO-2 controls feed through to what homes pay for the wires and pipes that deliver their energy. The review's central claim is that inflation has handed companies more than Ofgem intended when it set the controls, at the same time as many households have fallen behind on their bills. For a household, the practical link is between the standing charges and unit rates it pays and the allowed revenues of the companies operating its local network. The review does not set out any change to those charges, and no decision by Ofgem on the figures has been reported. Households with a complaint about a supplier, or about billing and debt handling, can find routes through the energy complaints and redress system, which covers Citizens Advice and the Ombudsman. The wider framework of price controls and consumer bodies sits under regulation and policy.
What happens next
The review is an update to Citizens Advice's earlier analysis rather than a decision by the regulator. No response from Ofgem to the updated figures, and no timetable for any adjustment to the RIIO-2 controls, has been reported. The charity's call is for voluntary commitments from network companies; whether any company has offered them has not been reported.
Sources1 cited
- Debt to society update: network company windfalls increase - Citizens Advice, citizensadvice.org.uk