Ofgem confirms it will cut National Grid's spending allowance

By

Sharecast News | 24 Feb, 2017

Energy regulator Ofgem confirmed on Friday that it will cut National Grid's spending allowance for running the high voltage electricity grid and high pressure gas main by £185m.

Ofgem will reduce National Grid's allowances for the high pressure gas pipeline price control by £168.8m because the Avonmouth gas pipelines it planned to build are no longer needed.

In addition, it will cut allowances for the high voltage electricity grid price control by £38.1m, as less fault protection works are needed due to fewer generators connecting to the high voltage grid.

However, the regulator will allow an additional £21.5m for system operation.

"The electricity system is going through major changes as we move to a low carbon economy. So National Grid (as system operator) has a bigger role to play. This includes providing additional supply and demand balancing services."

Last news