OFGEM Ofgem decision on mid-period review (7344X)
24 Fevereiro 2017 - 4:00AM
UK Regulatory
TIDM46QK TIDM82HZ
RNS Number : 7344X
OFGEM
24 February 2017
24 February 2017
Ofgem reduces National Grid's spending allowances for its
transmission price controls
Ofgem has confirmed it will reduce National Grid's spending
allowances in its current price controls for running the high
voltage electricity grid and high pressure gas main by GBP185
million.
In May last year we launched a mid-period review of the 2013 to
2021 energy transmission price controls. In August we announced a
consultation on our minded to decision to reduce National Grid's
spending allowances by GBP185 million.
The final changes in allowances are as follows:
-- A reduction in National Grid's allowances for the high
pressure gas pipeline price control by GBP168.8 million. This is
because the Avonmouth gas pipelines it planned to build are no
longer needed.
-- A reduction in National Grid's allowances for the high
voltage electricity grid price control by GBP38.1 million. This is
because less fault protection works are needed due to fewer
generators connecting to the high voltage grid. This has not
affected the reliability of the high voltage network.
-- An additional GBP21.5 million for system operation. The
electricity system is going through major changes as we move to a
low carbon economy. So National Grid (as system operator) has a
bigger role to play. This includes providing additional supply and
demand balancing services.
Changes to National Grid's revenue will take effect from April
2018.
Ofgem has also opened a consultation on making further changes
to the price control allowances of transmission and gas
distribution companies. This includes proposals to reduce National
Grid Gas Distribution's allowances by GBP54m. This reflects that
some work on its medium pressure gas mains will not be delivered in
this price control period.
-ends-
Notes to editors
1. A copy of Ofgem's decision on mid-period review is
https://www.ofgem.gov.uk/publications-and-updates/mid-period-review-decision
The review did not re-open the price control (for example
changing key financial aspects such as the allowed cost of
capital).
A copy of Ofgem's consultation on further changes to allowances
of transmission and gas distribution companies under parallel work
for the mid-period review is here
https://www.ofgem.gov.uk/publications-and-updates/consultation-mid-period-review-parallel-work
2. Ofgem has also published four reports today on the 2015/2016
year of the price controls for electricity distribution, gas
distribution, gas transmission and electricity transmission. The
reports show that the number of power cuts on local electricity
networks continues to fall. They are now almost 50 per cent below
the level in 2002. By the end of 2016, 40,000 more fuel poor homes
had been connected to the gas grids. Customer service continues to
improve with the majority of network companies meeting or beating
customer service targets. The reports also set out the spending of
network companies against allowances and their forecasted
returns.
Links to the reports are below:
RIIO Electricity Transmission Annual Report 2015-16 -
https://www.ofgem.gov.uk/publications-and-updates/riio-electricity-transmission-annual-report-2015-16
RIIO Electricity Distribution Annual Report 2015-16 -
https://www.ofgem.gov.uk/publications-and-updates/riio-electricity-distribution-annual-report-2015-16
RIIO Gas Distribution Annual Report 2015-16 -
https://www.ofgem.gov.uk/publications-and-updates/riio-gas-distribution-annual-report-2015-16
RIIO Gas Transmission Annual Report 2015-16 -
https://www.ofgem.gov.uk/publications-and-updates/riio-gas-transmission-annual-report-2015-16
3. 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 market facts and figures.
Follow us on Twitter @ofgem
For further press information contact:
Ofgem press office
07766 511470
0207 901 7225
This information is provided by RNS
The company news service from the London Stock Exchange
END
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