Energy regulator caps electricity infrastructure investment at £6.5bn
Tuesday 04 August 2009
Ofgem, the UK energy regulator, has told Britain's regional electricity networks to invest £6.5bn in the next five years to upgrade their creaking infrastructure, 17 per cent less than the companies forecast.
The move to cap investment for the 14 operators between 2010 and 2015 follows the £5.2bn invested in the five-year period up to 2010, and means a £4-a year rise in the average household's electricity bills.
The regulator said the proposals will "deliver better customer service from the regional electricity network companies, maintain high network reliability and pave the way for further carbon reductions". The plans will fund "vital upgrades" to the networks, which were largely built in the 1950s and 1960s.
Ofgem called on companies to cut costs to 10 per cent lower than forecasts, as well as the cut to investments, "to protect customers from unnecessary price rises in today's difficult economic environment".
The companies will also be given incentives to cut carbon emissions as well as network losses, which currently run at the equivalent to the electricity used in six million homes.
Ofgem has toughened its stance on customer service, saying the companies would be penalised for a poor service. Companies have also been called upon to boost their existing connections service.
Ofgem chief executive Alistair Buchanan said: "Our electricity network proposals are tough but fair and will deliver for energy consumers today and in the future. We have accepted the companies' investment plans but told them to deliver them at much lower cost."
The watchdog regulates the allowed revenues and expenditure of the regional electricity networks through price controls reviewed every five years.
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...