UK Energy Regulator Sets Out Network Prices, Five-Year Investment Package
30 November 2022 - 6:51PM
Dow Jones News
By Joe Hoppe
U.K. energy regulator Ofgem set out Wednesday new local
electricty-network price controls for 2023 to 2028, and said it has
a five-year investment package for six electricity distribution
network companies.
Ofgem said the investment packages for the companies, which
cover 14 local networks, will help deliver cheaper, cleaner and
more reliable local grids at no extra cost for consumers.
The networks are expected to provide more benefits by lowering
returns to investors and driving more efficiencies within their
companies. A key requirement of the plan will be for networks to
focus investment on supporting the shift away from heavy dependence
on fossil fuels, toward more homegrown sources of energy.
The potential for renewable-energy sources will require changes
in the way energy is used and stored to access their benefits, such
as boosting grid capacity, and the new price control will allow for
the scale of investment required without adding to bills, Ofgem
said.
"The investment set out today delivers value for consumers,
safeguards security of supply and helps ensure Britain is no longer
at the mercy of international energy prices or geopolitical
events," said Akshay Kaul, Ofgem interim director for
infrastructure and security of supply group.
National Grid PLC said it will review the full package contained
in the final determination in detail to see if it encourages
sufficient investment to transition to a low-carbon energy system
while ensuring reliable supply.
Ofgem is expected to publish its statutory consultation on the
proposed license modifications to implement the final determination
in December, followed by a consultation period.
"Given the expected timeline, we anticipate that we will make a
decision on whether to accept or appeal the license modifications
by February 2023," National Grid said.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
November 30, 2022 02:36 ET (07:36 GMT)
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