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Cymru/Wales Gas Branch |
Date: 28/09/2009
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Wales & West Utilities Staff News
OFGEM Reviews Pensions Again UNISON has submitted comments to the latest OFGEM review of its price control pension principles. In our submission we express our strong concern with the tone and contents of the consultation document which considers incentives for the employers to cut pension scheme costs on the grounds of providing better price value to energy and gas consumers. However OFGEM state in their consultation document that 7 to 8% of total Network Operator costs derive from pension costs which in our view is neither excessive nor against the public interest. The reality is that these costs are contained i.e. there are virtually no final salary pension schemes open to new members in the Sector. This suggests that the companies are sufficiently conscious of their pension scheme costs and the need to keep these in check. It's UNISON's view that there are already sufficient incentives for electricity and gas network operators to ensure that their pension scheme costs are not unfairly borne by consumers. In fact, OFGEM's proposals, if implemented, would increase not decrease pension costs to the detriment of consumers, the companies and Scheme members. UNISON does not believe the public would look favourably on OFGEM implementing proposals that could well detrimentally affect the pension rights of ordinary employees at the expense of adding shareholder value. The public and customers would much prefer that greater control was exercised over energy prices where competition is clearly failing to deliver affordable prices. Next steps UNISON representatives from the Pensions Unit and Energy Executive attended an OFGEM seminar on 8 September. While the event in itself did not shed much new light on the debate it was learned that OFGEM will produce some initial thoughts (as part of the wider Distribution Price Control) for further consultation before reaching any final conclusions. The unions in the energy sector - UNISON, Prospect, GMB and Unite- have also been invited to meet the Head of Utility Regulation at OFGEM for more detailed discussions. A copy of our full submission is attached.
To obtain a copy please
click here Members are reminded that they can contact their local representative to express their views or to forward any questions. Alternatively, please feel free to email us at queries@unisoncymruwalesgas.org.uk - other contact methods may also be found at the bottom of this message.
Regards, Unison Cymru/Wales Gas
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