The energy regulator is pressing ahead with plans to save households £5 billion by slashing profits for companies such as National Grid and SSE that run Britain’s gas and electricity networks. Ofgem also said that it was limiting the returns that National Grid, the FTSE 100 utility group, could make building the £650 million power line to connect the new Hinkley Point C nuclear plant. National Grid has protested that the proposed returns for the 34-mile link to the Somerset facility are too low and yesterday reiterated that it was considering “all options” over the Hinkley Point decision. It has not ruled out appealing to the Competition and Markets Authority. The companies that operate and maintain Britain’s gas pipeline and electricity cable networks get their revenues from charges on consumer energy bills, accounting for about a quarter of a typical annual household payment. Ofgem sets the amount that they can charge through price controls, based on its assessments of their likely costs and fair return on investment.
Times 31st July 2018 read more »
The energy regulator is standing by its plan to tighten the screws on energy networks while delivering a fresh blow to National Grid’s future earnings. Despite outcry from the industry Ofgem will stick to its plan to slash the returns regulated energy firms can make from transmitting power from the high voltage national grid to smaller, regional networks. It will also force National Grid to dramatically cut the costs of work to connect the new Hinkley Point C nuclear power plant to the grid, signalling a tough road ahead for those taking on major power connection projects.
Telegraph 30th July 2018 read more »
National Grid given go-ahead for Hinkley nuclear project. Regulator Ofgem will, however, set the revenue the grid operator can earn from the transmission upgrade.
Energy Live News 30th July 2018 read more »
