13th Dec 2023 09:27
(Alliance News) - National Grid PLC on Wednesday noted the launch of the RIIO-3 price controls consultation by UK regulator Ofgem.
The electricity infrastructure and gas utility said the consultation, which is the next phase of the RIIO-T3 investment programme, will provide the framework on which National Grid will base its electricity transmission business plan, which is due for submission late next year.
"As we look towards RIIO-T3, and a further step up in investment, we especially welcome Ofgem's recognition in this consultation of the need to deliver clear signals and direction so as to provide certainty and assurance to investors that projects are viable, investable and deliverable," said National Grid, adding that "this will enable National Grid to continue delivering world class networks at the lowest cost for consumers."
The consultation launched by Ofgem on Wednesday will decide the 2026-2031 electricity transmission and gas network price controls, and will be covering a "critical five-year period" on the transition to net zero.
Ofgem said the consultation is a "key step in agreeing the proposed RIIO-3 price control methodology to invest in the energy system into the next decade."
"It is designed to balance protecting existing and future domestic consumers, while unlocking the long-term capital needed in national electricity and gas transmission infrastructure and local gas distribution grids across England, Wales, and Scotland," the UK regulator said.
RIIO-3 will start once the current settlement for high voltage electricity transmission and national and local gas networks ends in 2026.
Ofgem Interim Director for Network Price Controls said: "We're honest about the uncertainties on the future of the gas network. It's right government takes time needed to weigh up big strategic policy calls on the future of the gas grid - but time is of the essence as the status quo is not sustainable. We must nail down in the next 18 months how we regulate network assets amidst these strategic uncertainties, particularly around potential repurposing or decommissioning the grid, while protecting interests of consumers and investors both now and in the future.
"This consultation is a critical step in determining how we redesign our network regulation to address a net zero future and we're calling on stakeholders across the energy industry, investors, businesses and consumer groups to feed into this process."
Shares in National Grid were down 0.3% at 1,065.00 pence each in London on Wednesday morning.
By Sabrina Penty, Alliance News reporter
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Related Shares:
National Grid