SummarySummary Companies Price controls begin on April 1Proposals are subject to statutory consultationShould increase use of renewable powerGreen energy would be backed up by nuclear, hydrogenLONDON, Nov 30 (Reuters) - Britain’s energy watchdog has proposed price controls for electricity distribution network companies for the next five years that it said would drive investment in homegrown supplies and deliver cheaper power without increasing consumer bills.
The controls, which will run from April 1, 2023, to 2028, require six electricity distribution network companies to focus investment towards "more homegrown, cleaner, cheaper, and secure sources of energy".
Ofgem said it expected the proposal to increase the use of renewables, including wind and solar energy, backed up by expanded nuclear and hydrogen-generated energy.
Known as RIIO-ED2 (Revenue = Incentives + Innovation + Outputs for electricity distribution), the proposal sets the level of investment Ofgem allows local electricity distribution networks to make in the five-year period.
The total allowed expenditure for the six companies was around 22 billion pounds, Ofgem said.