Archive for April, 2013

Ofgem’s £30 billion price controls come into effect

Wednesday, April 10th, 2013

Ofgem’s ground-breaking new price controls come into effect this week, marking the start of around £30 billion investment in Britain’s energy infrastructure.
The final decisions on the price controls were taken by Ofgem in 2012 and were subsequently accepted by all companies. The price controls will run until 2021 and relate to the network companies operating Britain’s high voltage electricity grid and high and low pressure gas networks. Included in the network company plans is:
• around £7 billion earmarked for Scotland’s high voltage electricity network, creating around 1,500 jobs
• a £15.5 billion upgrade for the high voltage electricity network in England and Wales and the high pressure gas networks across Britain, creating around 7,000 jobs, mainly in the construction supply chain
• around £8.7 billion to ensure that Britain’s low pressure gas networks, which deliver gas to homes and businesses, remain safe and reliable.

Hannah Nixon, Ofgem’s Senior Partner for Distribution, said: “This week marks a very significant moment as it forms a key part of implementing the investment needed to protect our security of supply. Ofgem’s new RIIO price control framework delivers around £30 billion of this investment at a fair price to consumers. It also helps ensure Britain’s energy infrastructure will remain among the most reliable in the world.”