Ofgem is to significantly lower the proportion of money going to network company shareholders in the next price period as it looks to target more flexible local grids. Such a change would allow networks to commit to new investment to support the net zero transition, while keeping energy bills affordable Ofgem said. The new price controls could “pave the way for turning Britain’s streets green, unlocking the investment needed to support the UK, Scottish and Welsh government climate change targets, particularly around the electrification of transport,” said Jonathan Brearley, Ofgem’s chief executive, said.
Current 11th March 2021 read more »
The energy regulator laid the ground for another showdown with network companies as it unveiled plans to cut the returns of power distribution networks. Ofgem is already facing a Competition and Markets Authority referral from electricity transmission network and gas pipeline owners over its plans to curb their takings over the five years from next month. Undeterred, the regulator said that it intended to take similar action on distribution networks, for whom the next price control settlement begins in 2023. The proposals would affect SSE, ScottishPower, UK Power Networks, Northern Powergrid, Electricity North West and Western Power Distribution. Ofgem said that it intended to cut their returns by a third to about 4.4 per cent based on its “working assumptions” and today’s market conditions. This is in line with the 4.3 per cent return it ended up at for the other network companies, which are challenging it at the competition watchdog.
Times 12th March 2021 read more »