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Ofgem has confirmed it is proposing much lower returns for network companies for the next price control period from 2021 in a move it said would help deliver a “smarter, fairer and cleaner energy system”. The regulator’s proposals would set baseline – or cost of equity - returns at 4% - about 50% lower than the previous price controls. The lower overall cost of capital is expected to save consumers £6.5 billion. It also proposes to keep adjusting the cost of borrowing network companies annuall...
18 12 2018
News article - 18 December 2018
Electricity supplier licences should be replaced with a risk-assurance framework in order to stimulate innovation, according to a new report. The Grantham Institute at Imperial College London said the switch would allow new business models to flourish. It highlighted the growth of decentralised and digitalised energy. Senior research fellow Jeff Hardy branded the current system for licensing suppliers as “not fit for purpose to unleash this kind of innovation in the market”. ‘Creaky and outd...
18 12 2018
News article - 18 December 2018
Ofgem has been accused of “seriously undermining” small-scale renewable energy projects through its proposals to reform grid charges. Under the regulator’s Targeted Charging Review ‘minded to’ proposals Ofgem is looking at removing the remaining grid charge benefits for small, embedded generation, and making such sites pay balancing charges. The regulator has also set out its preference to introduce fixed residual charges for all households and businesses rather than charges based on the amoun...
04 12 2018
News article - 4 December 2018
Roger Witcomb, who led the Competition & Markets Authority’s investigation into the Great British energy market, is to lead a new independent panel to assess network operators’ investment plans. The panel will examine the business plans put forward by network companies under the next price control mechanism, which will start from 2021. Ofgem said the independent group would challenge companies over how consumers’ needs are being taken into account. The regulator will also hold public hear...
04 12 2018
News article - 4 December 2018
Four projects are to share £46.8 million of funding to test technology to create smarter energy grids. Cadent will receive cash for further tests on the blending of hydrogen with the natural gas supplied to homes and businesses. UK Power Networks and SP Energy Networks will each be given funding to investigate charging patterns and locations for electric vehicles. National Grid, in its role as the electricity system operator, will look at ways to enhance security of supply. Cash from price c...
04 12 2018
News article - 4 December 2018