Ofgem has allowed £64m of funding requests by electricity
distribution network companies to invest in physical site
security, street works and rail electrification projects, and
refused around £258 million for projects that it considers are
not justified or provide poor value for money.
Ofgem has been consulting on 12 requests for additional funds by
network companies for adjustments in their funding under the
RIIO-ED1 price control (which runs from 2015-2023).
Requests that Ofgem has approved include:
- · £45 million to
fund street works activities by five network companies –
Electricity North West (ENWL), Northern Powergrid (NPg) Scottish
Power Energy Networks (SPEN) UK Power Networks (UKPN) and Western
Power Distribution (WPD).
- · £16 million in
funding to Scottish and Southern Energy Networks (SSEN) for
diversions required to facilitate the electrification of the
Great Western Railway line.
- · £3 million to NPg
to invest in sites that require physical site security upgrades.
Requests that Ofgem has refused include:
- · £67 million in
other street works funding requests.
- · £30 million
request from SSEN for cable replacement at Pentland Firth East as
the DNO has not demonstrated that the proposed solution is
economic and efficient.
- · £70 million sought
by SPEN for cable repairs as Ofgem considers that the level of
investment requested is not justified.
- · £42 million
request from SPEN for work to increase network capacity in
anticipation of electric vehicle uptake.
Notes to editors
- 1. Ofgem sets four price controls (for gas
transmission, electricity transmission, gas distribution and
electricity distribution). Price controls for both transmission
and gas distribution run from 2013 to 2021. The electricity
distribution price control runs from 2015 to 2023. Collectively
these are known as the RIIO-1 price controls.
- 2. Ofgem has been consulting on a new set of
price controls, called RIIO-2, which will first come into effect
in 2021 when the transmission and gas distribution price controls
of RIIO-1 have expired.
- 3. More
information on our decisions
