Energy Customers to Benefit from Network Efficiency Savings

Energy regulator Ofgem has announced that the UK’s gas and electricity network operators are delivering efficiency savings which are contributing to a reduction in costs for customers.
 
Today’s publication of the annual iteration process (AIP) for energy network operators has shown that the companies responsible for the wires and pipelines of the energy system are delivering services at lower costs than originally forecast. By spending less to deliver outputs, network operators are contributing to £510.5 million savings which will be shared with customers through their bills.
 
The strict regulation of energy networks has seen the cost to bill payers fall 17% since privatisation, while incentives and penalties have driven up performance, so that for a cost of 81p a day UK customers benefit from one of the most reliable energy networks in the world.
 
Energy Networks Association Chief Executive David Smith said:
 
“Energy network companies have worked hard to improve efficiency and deliver vital services at lower costs for customers. Today’s announcement shows that the process of sharing efficiency savings with customers is working.
 
Network innovation is helping to avoid unnecessary costs for customers today and delivering the smarter, more efficient networks which are so important to an affordable and secure energy future.”
 
Since privatisation the energy networks have managed to maintain a high level of security of supply at value to money for customers.
 
Network costs are now 17% lower than they were when at the time of privatisation.
 
The stability of the regulatory model has ensured consistent investment. Between 1990 and 2020, £80 billion will have been invested in the gas and electricity networks.
 
This investment has delivered UK energy networks which are among the most reliable in the world. There has been a reduction in power cuts of 30% since 2002. The reliability of the transmission networks and gas distribution network is over 99.9%.
 
ENDS
 
Notes for Editors 
 
ENA is the voice of the networks representing the ‘wires and pipes’ transmission and distribution network operators for gas and electricity in the UK and Ireland.
 
For further information please contact:
 
Matthew Pringle Press and Public Affairs Officer Energy Networks Association Direct Email: [email protected]
Press Team: [email protected]
M: +44 (0) 7792 220 974