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UK’s energy regulator proposes package to boost grid capacity
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(Reuters) -Britain’s energy regulator proposed a spending package of 20.9 billion pounds ($25.48 billion) on Wednesday, including 2.7 billion pounds in upfront funding, as part of an initial five-year plan for sustainable and affordable regional energy grids.
(Reuters) -Britain’s energy regulator proposed a spending package of 20.9 billion pounds ($25.48 billion) on Wednesday, including 2.7 billion pounds in upfront funding, as part of an initial five-year plan for sustainable and affordable regional energy grids.
The plan will boost grid capacity, improve customer service and resilience to prevent power outages, Ofgem said.
It said most customers could see a small drop in costs related to network charges as it laid out the 2023-2028 plan, which includes price controls that set the revenue which each of Britain’s 14 Distribution Network Operators (DNOs) can earn.
The regulator is proposing to reduce the cost of equity allowance for the companies to 4.75% from 6-6.4% for the current period, which ends next year.
“We’re determined to get the best possible deal for consumers and the proposals we’ve published today will mean that substantial additional investment can be made to deliver net zero without placing any further pressure on bills,” Ofgem CEO Jonathan Brearly said.
The average customer currently pays around 100 pounds ($121.89) per year to operate, maintain and reinforce such grids, the regulator said.
Ofgem will hold consultations on the proposed plan until August 25 with a final decision to be confirmed in December.
($1 = 0.8204 pounds)
(Reporting by Yadarisa Shabong and Radhika Anilkumar in Bengaluru and Nora Buli in Oslo; editing by Rashmi Aich and Jason Neely)
Ofgem, the Office of Gas and Electricity Markets, is the regulator for the electricity and gas markets in Great Britain, ensuring that consumers receive a reliable supply of energy at a fair price.
Grid capacity refers to the maximum amount of electricity that can be transmitted through the power grid at any given time, which is essential for meeting consumer demand.
DNOs are companies responsible for operating and maintaining the electricity distribution network, ensuring that electricity is delivered safely and reliably to homes and businesses.
Consultations allow stakeholders, including consumers and businesses, to provide feedback on regulatory proposals, ensuring that decisions reflect public interest and industry needs.
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