Ofgem has confirmed its methodology for setting the next price controls for Great Britain’s local electricity distribution networks, known as RIIO-ED2, which run for five years from April 2023.
The UK's energy networks will be crucial in supporting the UK's Net Zero target, which is to achieve net zero emissions by 2050 and 2045 in Scotland.
Setting out its approach to boosting green and smart investment in local grids, Ofgem highlighted around £80 million of shovel-ready projects have already been accelerated by the networks this year, despite the challenges of the global coronavirus pandemic.
David Smith, Chief Executive of Energy Networks Association, which represents the UK and Ireland's energy networks, said:
“In the last fortnight we have seen the Prime Minister’s Ten Point Plan and the Energy White Paper set ambitious Net Zero emissions plans that depend on network investment. Networks are responding to this by accelerating projects and by working with Ofgem to see what more can be delivered in advance of the next price control to support their communities ambitions. This work will also lay a foundation for the next distribution price control, RIIO-ED2, remembering that distribution companies will submit their business plans to Ofgem in July 2021, in what is shaping up to be the most important planning horizon since privatisation.”
Following the launch of the Prime Minister's Ten Point Plan, the networks have set out their own plan detailing how they are supporting each of the ten steps.
As we approach the year in which the UK will host the 26th UN Climate Change Conference of the Parties (COP26) in Glasgow, the energy networks are working with Ofgem to develop further opportunities to support Net Zero and future users’ needs in line with government priorities. Further information on these options is expected early in 2021.
Notes to editors
More information on how the networks are supporting Net Zero right now can be found at energynetworks.org/netzeronetworks
Read about out how the networks are responding to the challenges of Covid-19 and are prepared for winter.
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.
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