Ofgem
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OFGEM PUBLISHES CONSULTATION ON THE FUTURE OF NETWORK REGULATION
Ofgem today published the latest consultation for its RPI-X@20 project, which is looking at possible reforms for network regulation. Its Emerging Thinking consultation document suggests that the RPI-X price control mechanism, which has been successfully used by regulators for over twenty years, needs to be changed as it will not be able to cope with the pace, uncertainty and scale of change needed to deliver sustainability for consumers.
Ofgem’s consultation sets out a potential new regulatory framework for consultation. This framework seeks to ensure network companies deliver investment when and where it is needed and stimulates innovation in the way networks are run. If implemented, it would also encourage a change in the mindset of network companies so they manage the uncertainty and risk in delivering a low carbon economy and seek to innovate as well as to invest to support this transition. Ofgem is consulting on proposals to change the emphasis of regulation from focusing on companies’ costs to looking at what more companies can deliver in terms of reliable networks, safety, and investment to support low carbon generation and meet the needs of consumers.
Notes to Editors
1. Timetable
Ofgem’s proposals for network regulation will be subjected to consultation before more concrete and detailed proposals are published in the summer. These will then be incorporated in Ofgem’s network price controls, starting with the Transmission and Gas Distribution Price Controls in 2013.
Copies of the document Regulating energy networks for the future: RPI-X@20 Emerging Thinking and a factsheet Reforming Network Regulation can be found on Ofgem’s website at www.ofgem.gov.uk.
For further press information contact:
Ofgem
Mark Wiltsher 020 7901 7006/Mobile: 07879602838
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