MAJOR INVESTMENT TO UPGRADE ENERGY NETWORKS
OFGEM ANNOUNCES MAJOR INVESTMENT TO UPGRADE BRITAIN'S GAS AND ELECTRICITY NETWORKS
· £24.2bn earmarked to upgrade and renew Britain's electricity and gas networks
· Ofgem cuts over £7bn from network companies' original spending plans to ensure value for money for consumers
· Ofgem continues to deliver a stable regulatory environment that successfully secures investment in Britain's vital infrastructure at a fair price to consumers
Receipt of Ofgem RIIO T1 & GD1 final proposals
National Grid notes receipt of Ofgem RIIO T1 & GD1 price control final proposals
Ofgem today published final proposals in respect of the RIIO-T1 and RIIO-GD1 price controls due to run for eight years to 31 March 2021. The draft licence amendments are expected to be published later this week, and Ofgem's final direction issued in late January or early February. After that direction is issued, parties may either respond within 20 working days or the licence amendments as directed, will come in to effect from 1 April 2013.
The final proposals cover all of National Grid's transmission and distribution owner and system operator businesses in the UK, with a regulated asset value in excess of £22bn and a significant proposed investment programme over the next eight years. As such the proposals are both lengthy and wide ranging and will take some time to review in detail before a final decision can be made about the overall acceptability of some or all of the plans.
As a result, as previously stated, we do not expect to be able to provide the market with a further update much before the deadline for communicating our final decision to Ofgem, which should be no later than early March 2013.