Ofgem sets out rules for network investment

The regulator has set out the rules for how networks should keep pace with projected electricity demand across the economy ahead of the next price control period.

Ofgem said its “challenging but fair rulebook” informs distribution network operators how their 2028-2033 business plans will be assessed once they are submitted in December.

Ofgem said the rulebook includes measures aimed at providing stronger consumer protection through tighter cost controls designed to prevent unnecessary, excessive or speculative upfront investment.

Ofgem Director of Network Price Controls Steve McMahon said: “We know electrification across the economy will drive unprecedented demand but its precise pace, scale and location remain uncertain.

“Our rulebook strikes a tough but fair balance in expanding grid capacity to meet the demands placed on them.”

The full distribution price control settlement will be approved by the end of 2027.