Reports are misleading, says ENA.
“It is misleading to consider profitability alone which does not include the amount of capital investment in the networks. This is particularly the case for network companies, which are capital intensive businesses and invest heavily year on year. The regulatory reports provide a more accurate reflection of the full value delivered by the networks which includes this reinvestment back into the system.”
“Since 1990 the cost of running the networks to British bill-payers has fallen by nearly 20% and the networks have a strong track record of consistently delivering for the UK’s households, businesses and communities.”
Notes to editor
- £100 billion of investment has been delivered since privatisation in 1990 by gas and electricity network companies. Since 2015 alone, the electricity network companies have spent £10.2bn managing their networks
- Since 1990 customers have 59% fewer power cuts while their length has been reduced by 84%. An average customer would have a power cut less than every two years lasting around 35 minutes
- Electricity network companies are thoroughly scrutinised by the regulator, with strong incentives in place to ensure efficient delivery for customers and in 2015 the Competition and Markets Authority also carried out a detailed review of the regulatory framework
- Customer service scores recorded by Ofgem for electricity distribution currently stand at 8.7 out of 10
- Directly employing 36,000 people, the energy networks have a vital role in supporting UK plc. The UK is also ranked globally seventh by the World Bank for ease of getting electricity. This is well above countries like the US and France (54th and 14th)
- Renewables’ share of total generation was at a record high level of 33.3% in 2018, up from 29.3% in 2017. Over 30GW generation has been connected to the distribution network, most of which is renewable
- The National Infrastructure Commission has identified up to £8bn p.a. savings/efficiency from networks investing in innovative new technologies
About Energy Networks Association
Energy Networks Association (ENA) is the industry body representing the electricity wires, gas pipes and energy system in the UK and Ireland.
ENA helps its members meet the challenge of delivering electricity and gas to communities across the UK and Ireland safely, sustainably and reliably.
Its members include every major electricity and gas network operator in the UK and Ireland, independent operators, National Grid ESO which operates the electricity system in Great Britain and National Gas which operates the gas system in Great Britain. Its affiliate membership also includes companies with an interest in energy, including Heathrow Airport and Network Rail.
What are energy network operators?
Energy network operators manage and maintain the wires, pipes and other infrastructure which delivers electricity and gas to your home, business and community. They are private companies which are regulated by Ofgem and employ around 40,000 people in Great Britain.