Massive investment challenge faces energy networks

26 July 2010

Massive investment challenge faces energy networks

The electricity and gas networks body, Energy Networks Association (ENA), has welcomed the acknowledgement today by energy regulator Ofgem of the need for massive investment by energy networks as they fulfil their part to address climate change and maintain the security of UK energy supplies.

In what is a milestone in the advance towards a low-carbon energy sector the regulator has opened for consultation its plans to change the regulatory regime for the energy networks. ENA will now look to confirm that Ofgem's plans align with the investment challenges its members face.

ENA chief executive David Smith said:

"In setting out its plans for an overhaul of the way it regulates energy networks Ofgem is right to highlight the huge investment challenge gas and electricity networks face. It is good too to see an emphasis on long-term thinking - that will be essential as the industry sets out to prepare for a low-carbon economy and the very different patterns in energy production and use that will bring.

"We are pleased also to note the regulator's proposal to expand its allowances for funding low-carbon investment by gas and electricity networks."

ENA has played a full part in developing the plan for regulatory change and supports much of the thinking behind Ofgem's proposals.