The debate over the next round of price controls for U.K. transmission companies was always going to be a heated one. In July, Ofgem, the U.K.’s electricity and gas regulator, published its draft proposals for RIIO-2 — the price control framework for transmission networks in the period 2021-2026 — after lengthy consultations with the industry. The headline figure is a cap on equity returns of 3.95 percent. A separate framework for distribution networks is still in development. That 3.95 percent figure is down from the real-world returns on equity across the three operators — National Grid, SSE and SP Energy Networks — of between 8 and 10 percent, according to data from Ofgem.
GTM 14th Sept 2020 read more »