NGG National Grid Plc New

By Maryam Cockar

A request by National Grid PLC (NG.LN) to pass on 263 million pounds ($340.2 million) of maintenance costs to consumers looks set to be rejected by the U.K. energy regulator.

The U.K. Office of Gas & Electricity Markets, or Ofgem, said Wednesday that it isn't persuaded to approve National Grid's request to pass on to consumers GBP140 million in costs to replace a gas pipeline across the Humber estuary in northern England as National Grid hasn't demonstrated that the work is in the best interests of consumers.

Ofgem said it also intends to reject most of National Grid's request to pass on a GBP123 million cost required to ensure that nine gas compressor sites comply with the European Industrial Emissions Directive.

The regulator said it is also considering a proposal by National Grid for GBP118 million to install almost nine kilometers of electricity cables underground in an Area of Outstanding Natural Beauty in Dorset, England. Ofgem said the cost could be cut by more than GBP2 million as National Grid hasn't justified some of the expenditure.

Ofgem will make a final decision on the costs it will allow National Grid to recover this autumn.

Write to Maryam Cockar at maryam.cockar@dowjones.com

(END) Dow Jones Newswires

August 08, 2018 04:20 ET (08:20 GMT)

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