Changes urged to regulator’s transmission price controls

National Grid has urged changes to baseline returns and incentives under Ofgem’s draft RIIO-ET3 price control.

In its response to the regulator’s consultation, National Grid said it welcomed the commitment to an £80 billion investment plan in the electricity transmission sector and recognition of the need for urgency in delivery.

However, it said the draft determination “does not sufficiently recognise the practical realities of delivering the biggest expansion of the electricity system in more than a generation”.

It said changes are needed in relation to the baseline return and the incentives framework to allow high performing networks to achieve a “globally competitive overall return”.

It also wants to see other changes including a streamlining of the “overly complex suite of funding mechanisms”.

“As we move towards the Final Determination in December, we will continue to engage with Ofgem at all levels to agree a price control that attracts the investment needed to ensure the reliable and affordable flow of clean electricity whilst also meeting the ramp up in demand for power,” it said.

Ofgem has described its proposals as a “fair deal for both investors and consumers”.