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.
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