Networks give cautious reaction to Ofgem’s Strategy Decision Document

Friday, March 18, 2011 at 9:39AM

ENA notes today’s press release from Ofgem outlining the main headlines from its forthcoming Strategy Decision Document, which will seek to implement the principles of the new RIIO model and will be published in full at the end of the month.  

The Decision Document covers the price control reviews of both the gas transmission and distribution, and the electricity transmission companies and will take effect from April 2013 through to March 2021. The Document also includes a decision on the regulatory lives of new electricity distribution assets post-2015.  

ENA supports many aspects of the new RIIO framework for regulation and believes that it should help GB’s energy network companies deliver value for customers. It is also extremely important in the context of GB’s transition to a low carbon society and the need for some £30bn of investment by the energy network companies over the period to 2020.  

David Smith, Chief Executive of Energy Networks Association (ENA) said “These reviews come at a critical time. Initial indications suggest that Ofgem has responded in part to the industry’s concerns with the proposals they set out for consultation in December. However, there are clearly still a number of issues to be resolved, particularly in respect of the financial package proposed by Ofgem.  

"We will only be in a position to make more detailed comments on Ofgem’s proposals once we see the final Decision Document at the end of the month."  

Notes to editors:  

1. Ofgem has issued a Press Release and the Executive Summary from its forthcoming Strategy Decision Document which will be published on 30 March 2011. The Document covers the price reviews of the gas distribution (GD1) and the electricity and gas transmission (T1) companies which will be effective from April 2013. They can be found on their website here.

2. These reviews will be the first time that the recommendations of Ofgem’s RIIO model are implemented.  

3. The RIIO Framework was introduced by Ofgem this July. It stands for setting Revenue using Incentives to deliver Innovation and Outputs.  

4. ENA represents the ‘wires and pipes’ transmission and distribution network operators for electricity and gas in the UK and Ireland.  

For further information please contact:  
Tim Field, Press and Public Affairs Executive  
Energy Networks Association  
E: [email protected]  
T: +44 (0)207 706 5157  
M: +44 (0)7725 372 758  
W: www.energynetworks.org