British energy watchdog Ofgem on Tuesday gave the go-ahead for 40 billion pounds ($53.4 billion) in spending on its utility networks between 2021-26 to help prepare for more renewable power, including a higher than planned limit on grid operators’ returns. Compared to a July draft, it increased upfront spending on infrastructure by 5 billion pounds to 30 billion pounds, and granted additional funding of 10 billion pounds for future green energy projects. It also proposed a return on equity rate for network companies of 4.30%, up from an initial proposal of 3.95%. Companies are currently allowed rates of return on equity of 6%-7%. Britain’s grid companies said they would take time to review the regulator’s price control proposal, which assesses the costs they incur and also sets a profit limit.
Reuters 8th Dec 2020 read more »
Guardian 8th Dec 2020 read more »