Ofgem responds to National Audit Office report on electricity networks
Ofgem has responded to National Audit Office report on electricity networks.
Akshay Kaul, Ofgem’s director of network price controls said:
“We welcome the NAO’s findings that Ofgem’s regulation has delivered consumers a good service, increasing customer satisfaction and sharply reducing power cuts to half the European average, whilst attracting £70 billion investment to connect record levels of renewable power.
“We acknowledge that the overall costs to consumers to date have turned out to be higher than they needed to be. That’s why our tough new round of price controls will lower returns to save consumers money, whilst pushing companies to go further on decarbonisation and ensuring we retain one of the world’s most reliable energy systems.
“Under our regulation, companies must share any savings they’ve made during the price control period with consumers. So far, over £6 billion has been clawed back across all networks through reduced revenues or voluntary contributions.”
Ofgem is currently setting its next round of energy network price controls for gas/electricity transmission (T2) and gas distribution (GD2) from 2021 to 2026, and for electricity distribution (ED2) from 2023 to 2028. See “Ofgem confirms network price control methodology so consumers can benefit from cheaper, smarter and more sustainable energy network” for more information on our proposals.
For more information
For media, contact:
Tel: 0207 901 7460 / 07990 139504
Latest News from
Ofgem opens investigation into Symbio Energy Limited over Renewables Obligation and Feed-in Tariff payments06/01/2021 14:15:00
Energy regulator Ofgem has opened an investigation into Symbio Energy Limited over its late payments into the Renewables Obligation (RO) and Feed-in Tariff (FIT) schemes.
Record £348 million in support provided to vulnerable consumers through the Warm Home Discount18/12/2020 16:15:00
Suppliers paid £140 rebate to over 2.2 million vulnerable customers such as low income pensioners last winter
Ofgem confirms approach to boosting green and smart investment in local grids18/12/2020 13:15:00
Ofgem has confirmed its methodology for setting the next price controls for Great Britain’s local electricity distribution networks, known as RIIO-ED2, which run for five years from April 2023.
EDF Energy (Thermal Generation) Limited agrees to pay £6 million for breaching wholesale energy market regulations17/12/2020 13:15:00
From September 2017 to March 2020, EDF Energy (Thermal Generation) Limited (EDF ETG) regularly sent misleading signals to the National Grid Electricity System Operator (ESO) about the capabilities of its generation plant, Ofgem monitoring has found.
Ofgem response to the government’s Energy White Paper15/12/2020 13:15:00
Jonathan Brearley, chief executive of Ofgem, yesterday commented on the publication of the Government’s Energy White Paper.
Ofgem gives go-ahead to a £40 billion+ investment programme for a stronger, greener and fairer GB energy system09/12/2020 13:15:00
Ofgem has finalised its price control for 2021-26 (RIIO-2) by confirming a major investment programme into Britain’s energy infrastructure to improve services for customers, reduce the impact of the networks on the environment, and drive a fair price for consumers.
Ofgem protects customers of failed supplier Yorkshire Energy03/12/2020 10:15:00
Yorkshire Energy Limited (also known as Daisy Energy) a gas and electricity supplier with around 74,000 domestic customers, and a small number of non-domestic customers, is ceasing to trade.
Winners of 2020 Network Innovation Competition help drive net zero01/12/2020 09:15:00
Ofgem has awarded up to £58m to five pioneering projects in the 2020 Network Innovation Competition to help support the transition to a net zero emissions economy at the lowest cost to consumers.