Information  X 
Enter a valid email address
  Print      Mail a friend       More announcements

Friday 02 August, 2019

OFGEM

Ofgem consults on network funding requests

RNS Number : 6332H
OFGEM
02 August 2019
 

Ofgem announcement

 

Ofgem consults on electricity distribution funding requests

 

·      Network companies have submitted 12 funding requests with a total value of £322 million

 

·      Ofgem is consulting on its proposal to allow network companies to recover approximately £75 million, including funding to invest in physical site security, rail electrification and a number of street works projects

·      Ofgem proposes to refuse approximately £247 million of funding requests where we consider that these projects have not been justified or provide poor value for money.

 

Ofgem is consulting on requests by several energy network companies for adjustments in funding under the RIIO-ED1 price control, which runs from 2015-2023.

In certain circumstances, network companies can apply for additional funding to cover significant and additional costs for certain activities which had not been forecast when the price controls were set.

Ofgem is consulting on proposals to allow a total of £25 million to fund street works by three network companies - Electricity North West (ENWL), Scottish Power Energy Networks (SPEN) and Western Power Distribution (WPD). We are minded not to approve approximately £90 million in other street works funding requests.

Among other submissions, Ofgem proposes to allow an additional £16 million in funding to Scottish and Southern Energy Networks (SSEN) for diversions required to facilitate the electrification of the Great Western Railway line. We are also proposing to accept a £30 million request from SSEN for cable replacement at Pentland Firth East that will be subject to strict conditions.

Ofgem proposes not to approve the highest value funding request - £70 million sought by SPEN for cable repairs - as we consider that the level of investment requested was not justified.  We also propose not to accept a £42 million request from SPEN for work to increase network capacity in anticipation of electric vehicle uptake.

Full details of all funding requests and Ofgem's proposed decisions are in our consultation document. The consultation will close on 30 August 2019 and we propose to publish our final decisions in October 2019.

 

Notes

1.  Ofgem sets four price controls (for gas transmission, electricity transmission, gas distribution and electricity distribution). Price controls for both transmission and gas distribution run from 2013 to 2021. The electricity distribution price control runs from 2015 to 2023. Collectively these are known as the RIIO-1 price controls. Ofgem has been consulting on a new set of price controls, called RIIO-2, which will first come into effect in 2021 when the transmission and gas distribution price controls of RIIO-1 have expired.

More information about the price controls and energy networks

 

Further information

 

For media, contact:

Tim Webb 0207 901 7179

Media out of hours mobile: 07766 511470 (media calls only)

For investors, contact:

John Bolitho - 0207 901 7114

 

 

About Ofgem

 

Ofgem is the independent energy regulator for Great Britain. Its priority is to make a positive difference for consumers by promoting competition in the energy markets and regulating networks.

For facts, figures and information about Ofgem's work, see Energy facts and figures or visit the Ofgem Data Portal

For energy insights and updates straight to your inbox from Ofgem, please subscribe.Follow us on Twitter @ofgemLinkedIn and Facebook.

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
IRSZMGGRKMRGLZM

a d v e r t i s e m e n t