British electricity companies are to be given cash incentives by the
national electricity and gas regulator Ofgem for implementing corporate
responsibility programmes.
In an unusually clear-cut case of CSR making a direct contribution to a
company’s bottom line, Ofgem is asking regional electricity
distribution network operators to submit examples of their corporate
responsibility activities by early next year.
The decision follows a pilot Ofgem scheme in August, in which the 14
regional distributors were invited to apply for a pot of £1million
($1.9m). Among those to benefit was Bristol-based Western Power
Distribution, which received £500,000 in recognition of community
involvement activities that have included anti-bullying schemes in
schools and a volunteering project for its new apprentices. EDF Energy
received £300,000 in cash for its work with vulnerable customers who
have difficulty paying bills.
The level of the payments and whom they should go to are decided by a
panel that includes representatives from Ofgem, the Public Utilities
Access Forum, the Royal National Institute for the Blind, the Royal
National Institute for the Deaf, and Age Concern.
‘The idea of the scheme is not just to give companies free money, but
to promote good practice,’ said Ofgem. ‘We want all the distribution
networks to learn from these different examples.’ It is to continue the
reward scheme until 2010.
