Electricity customers benefit from falling network costs

For immediate release - Thursday 31 April 2015 

Tomorrow (1st April) marks the beginning of the first price control period for electricity distribution networks under Ofgem’s new RIIO (Revenue = Incentives + Innovation + Outputs) framework. The start of RIIO-ED1 is good news for energy customers, with the cost of the distribution network falling by an average of 12% this year saving over £681m. The eight year price control period will see the average domestic customer save an average of £10 a year on distribution costs.

David Smith, Chief Executive of Energy Networks Association said, “Since privatisation of the networks in 1990 customers have benefitted from a 17% reduction in costs and reliability has improved 30% since 2002. RIIO-ED1 will see further savings over the next eight years, enhanced customer service and record investment being delivered for consumers.”

Over the course of RIIO-ED1 £24.6 billion will be put in to maintaining, upgrading and operating the wires and cables of the local electricity network. This investment will support economic growth, connect new sources of renewable energy to the grid and fund technical and commercial innovation to deliver the smarter networks of the future. Customers will benefit from falling costs and improved performance in their networks.


Notes to 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.

Ofgem analysis shows that between 1990 and 2006 the total cost of running the GB electricity and gas networks fell 45%. Despite significant planned investment between 2006 and 2014 they are still 17% lower.

For further information please contact:

Tim Field MCIPR
Head of Press and Public Affairs
Energy Networks Association

E: [email protected]
T: +44 (0)207 706 5157
M: +44 (0)7725 372 758
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