U.K. Regulator Proposes Cuts to National Grid's Spending Allowances
August 18 2016 - 3:11AM
Dow Jones News
By Ian Walker
LONDON--The U.K. energy regulator Thursday announced a proposal
to cut National Grid PLC's (NG.LN) spending allowances for its
electricity and gas transmission businesses.
Following its mid-term review of the business, which started in
May, Ofgem proposes a cut of 169 million pounds ($220.87 million)
in National Grid's gas transmission allowance and GBP38 million in
electricity transmission. Ofgem is also proposing to approve an
allowance of GBP21 million so the company can enhance system
outputs.
Ofgem said it is consulting on its proposals and expects to make
a final decision this autumn. If approved, the changes are expected
to be effective April 2018.
Ofgem set the price controls for energy transmission and gas
distribution in 2013 for the period to 2021. As part of this,
provision was made for a mid-period review of the outputs companies
have to deliver for customers if there were material changes in
government policy, or changes in the needs of consumers and network
users.
-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
August 18, 2016 02:56 ET (06:56 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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