Posted on: 14/08/2018
Ofgem has proposed cutting the amount of money that network companies will be able to charge their customers for carrying out a series of projects.
Under the watchdog’s suggestions, National Grid, Wales & West Utilities and Cadent will only be allowed to recover £90 million for improving resilience to physical and cyber security threats, managing street works, and compensating landowners for work on gas pipelines.
The three companies had originally requested £114m to cover the costs.
The regulator has rejected a £263m bid from National Grid to replace a gas pipeline across the Humber estuary and upgrade gas compressors, arguing the company has not demonstrated the need for the replacement pipes, while the cash for the compressors is already covered in existing pricing mechanisms.
Burying pylon cable in Dorset
National Grid has also applied to charge its customers £118m to bury an electricity cable that runs through the Dorset Area of Outstanding Natural Beauty (AONB).
Ofgem plans to trim the amount by £2m as it feels the company has not fully justified the figure.
The consultation closes on 29 August, with Ofgem due to reach a decision in September.