12th May 2016 09:46
LONDON (Alliance News) - National Grid PLC on Thursday said it welcomed gas and electricity regulator Ofgem's continued commitment to the clarity and certainty offered by the eight-year price control framework, after Ofgem announced it has launched a mid-period review into price controls for two of National Grid's subsidiaries.
National Grid owns the electricity transmission system in England and Wales.
Ofgem on Thursday said it will conduct the mid-period review into the price controls for both the National Grid Electricity Transmission and National Grid Gas Transmission companies, having first set the controls in 2013 to run until 2021.
Ofgem said it will consult on proposals for any changes to outputs and associated revenue this summer. A decision on the proposals will be made in late autumn 2016, with any changes to take effect from April 1, 2017, the company added.
Following the statement, National Grid said it welcomes the regulators commitment to the framework which "has started to deliver important benefits for customers", but noted the scope of the mid-period review is "narrow with no change to key financial parameters of the framework".
"The areas covered by the mid-period review are limited, and relate to a few specific outputs which have an eight-year allowance of under GBP100.0 million in Electricity Transmission, and GBP165.0 million in Gas Transmission," National Grid said, adding that its Gas Distribution business is not included.
Ofgem noted that it has not identified any issues to justify a mid-period review for the 2013-2021 electricity transmission price controls of SP Transmission PLC and Scottish Hydro Electric Transmission PLC, which maintain the electricity transmission network in Scotland, or for the 2013-2021 gas distribution price control.
SP Transmission PLC is a subsidiary of ScottishPower Ltd and is responsible for the transmission of electricity in central and southern Scotland, whilst Scottish Hydro Electric Transmission is a subsidiary of SSE PLC, and managed electricity transmission in northern Scotland.
Shares in National Grid were up 0.7% at 1,003.50 pence on Thursday.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
National GridSSE