21st Dec 2009 11:40
Information Note
R/56
MONDAY DECEMBER 21 2009
OFGEM DECIDES TO EXTEND THE CURRENT 2007-2012 TRANSMISSION PRICE CONTROL TO 2013.
Following consultation in October, energy regulator Ofgem will extend the 2007-2012 gas and electricity transmission price control by one year so that it will now run until the end of March 2013.
The transmission price control sets the maximum amount of revenue which the four energy transmission companies* can earn from charges to customers using the the high-voltage electricity networks and the national high-pressure gas main (the National Transmission System).
Ofgem considers the extension of the current price control will ensure the conclusions of its RPI-X@20 project and other relevant developments in the transmission sector are reflected in the next control.
Ofgem will implement a one year adapted roll-over of the current transmission price control (TPCR4) for the period from 1 April 2012 to 31 March 2013. A full decision document setting out the reasons for the extension of the price control and the way forward will be published in January 2010.
-ends-
1. * The four energy transmission companies are:
National Grid Electricity Transmission Limited (NGET);
National Grid Gas Limited (NGG NTS);
SP Transmission Limited (SPTL); and
Scottish Hydro-Electric Transmission Limited (SHETL).
2. Ofgem's consultation on extending the 2007-2012 transmission price control is available here:
http://www.ofgem.gov.uk/Networks/Trans/PriceControls/TPCR5/Documents1/Approach%20and%20timetable%20options%20for%20taking%20forward%20the%20next%20Transmission%20Price%20Control%20Review%20FINAL.pdf
3. The RPI-X@20 review considers whether the existing regulatory frameworks for electricity and gas transmission and distribution networks are fit for purpose in terms of meeting the challenges that the energy sector faces, and in particular meeting the needs of existing and future consumers. More information on the RPI-X@20 review is available here:
http://www.ofgem.gov.uk/Networks/rpix20/Pages/RPIX20.aspx
4. Ofgem is the Office of the Gas and Electricity Markets, which supports the Gas and Electricity Markets Authority, the regulator of the gas and electricity industries in Great Britain. The Authority's powers and duties are largely provided for in statute, principally the Gas Act 1986, the Electricity Act 1989, the Utilities Act 2000, the Competition Act 1998, the Enterprise Act 2002, the Energy Act 2004 as well as arising from directly effective European Community legislation.
For further press information contact:
Chris Lock 020 7901 7225 / 07766 511470
Alison Wright 0207 901 7217 / 07771 980297
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