Ofgem has proposed to slash the amount of money energy networks can hand out to shareholders, but by less than previously expected after pressure from companies. The energy regulator said it would allow network companies to pay a return on equity of 4.3pc to investors between 2021 and 2026, down from returns of between 7pc and 8pc that are currently allowed. The move, which is Ofgem’s final decision on the matter, will save customers about £10 per year on their energy bills/ However it is a partial climbdown from the 3.95pc rate the watchdog proposed in its preliminary decision in July, which would have shaved £20 off annual bills. SSE said it “continues to have concerns” about the proposal and “will need to reflect further” as it reviews the full settlement. It comes after energy chiefs reacted with fury after the July proposal, with Scottish boss Keith Anderson claiming that regulators had “completely flunked” the first test to prove their green credentials by doing too little to bolster spending on clean power.
Telegraph 8th Dec 2020 read more »