OFGEM Mid-period review into network price controls (9903X)

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RNS Number : 9903X

OFGEM

12 May 2016

12 May 2016

Ofgem opens mid-period review into price controls for National Grid Electricity Transmission and National Grid Gas Transmission.

Ofgem set the price controls for energy transmission and gas distribution in 2013. As part of this, provision was made for a mid-period review of the outputs companies have to deliver for customers if there were material changes in Government policy, or changes in the needs of consumers and network users. A mid-period review is not intended to re-open the price control (for example change key financial aspects such as the allowed cost of capital).

Following our consultation in November, Ofgem has today decided to launch a mid-period review into the 2013-2021 price controls which will be limited to National Grid Electricity Transmission and National Grid Gas Transmission.

Ofgem will consult on proposals for any changes to outputs and associated revenues this summer. A decision on the proposals will be made in late autumn 2016. Any changes would take effect from 1 April 2017.

Ofgem has not identified any issues to justify a mid-period review for the 2013-2021 electricity transmission price controls of SP Transmission and Scottish Hydro Electric Transmission, or for the 2013-2021 gas distribution price control.

We are also taking forward parallel work which will seek to ensure more effective output accountability of network companies.

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Notes to editors:

Ofgem's decision document on the mid period review launch published today is here: https://www.ofgem.gov.uk/network-regulation-riio-model/riio-mid-period-review-riio-t1-and-gd1

Ofgem's November 2015 consultation on the potential for a mid-period review is here: https://www.ofgem.gov.uk/sites/default/files/docs/2015/11/151112_mpr_consultation_document_final.pdf

For further press information contact:

Chris Lock: 020 7901 7225

Out of hours: 07766 511470

This information is provided by RNS

The company news service from the London Stock Exchange

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May 12, 2016 02:00 ET (06:00 GMT)