National Grid: Ofgem Proposals 'a Step in the Right Direction'
March 15 2019 - 3:49AM
Dow Jones News
By Ian Walker
National Grid PLC (NG.LN) said Friday that the RIIO-T2
price-control proposals from energy regulator Ofgem are a step in
the right direction, but that it still has concerns.
The company said the proposals as currently set out won't bring
the changes consumers need.
"Our vision is of an energy future where bills are kept low for
consumers, energy is decarbonized, innovation is encouraged and
which together support the growth and prosperity of the UK
economy," National Grid said.
Late last year Ofgem said that it intends to set baseline
returns to shareholders at 4% for the next regulatory period from
2021, about half the previous limit. This is at the bottom end of
previous guidance in March 2018, when the regulator said it would
propose a range of between 4% and 6%.
Ofgem said previously that it expects the change, along with
adjustments to borrowing costs, to save consumers 6.5 billion
pounds ($8.6 billion) overall. Ofgem has launched a consultation on
the proposals to close in the second quarter of 2019.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
March 15, 2019 03:34 ET (07:34 GMT)
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