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 editors
- £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
We’re the industry body for the energy networks. Our members own and operate the wires and pipes which carry electricity and gas into your community, supporting our economy. The wires and pipes are the arteries of our economy, delivering energy to over 30 million homes and businesses across the UK and Ireland. To do this safely and reliably, the businesses which run the networks employ 45,000 people and have spent and invested over £60 billion in the last eight years.
ENA press office
+44 (0)7792 220 974