Networks prepare for “period of transition” in delivery of smarter future

For immediate release – Monday 6 February 2012

Ofgem has today (Monday 6 February) announced the launch of the next electricity distribution price control review, the first under the new RIIO framework (see notes). It will look at the cost of running the regional distribution networks that take electricity from the national transmission network and deliver it to our homes and businesses.

Key to this new approach under the RIIO framework, which the network operators strongly support, is understanding the needs of stakeholders in the networks. The price control will last for 8 or 9 years from 2015 and will need to account for an increase in renewables such as more people wanting to connect solar panels to their homes and greater electricity demand due to new technologies such as heat pumps and electric vehicles.

Welcoming the process, Energy Networks Association Chief Executive David Smith said:

“Network companies are all about delivering a service to the public and know that customers hold the key to our energy future. The price control review provides an opportunity to innovate, which is welcomed in this period of transition as we prepare for our lower carbon energy future.

“The networks are the enablers for this transition and combine the highest aspirations of public service with the commercial rigour to deliver it efficiently and cost effectively. As their relationship with the customer changes the networks will also need to help make a smarter future a simple one for end users.”

As part of the price control review for the gas distribution network, ENA has facilitated regular meetings with Ofgem to help ensure a successful process that understands the needs of all involved. It is expected that ENA will undertake a similar role at this review.

ENDS

Notes for editors

RIIO = setting Revenue and Incentives to deliver Innovation and Outputs

Ofgem’s announcement on ED1 can be viewed here.

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

For further information please contact:

Tim Field MCIPR,
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
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