The Chief of the Energy Networks Association has voiced concerns over the finance outlined in an Ofgem consultation.
David Smith said: “At face value, today’s proposals will not deliver the investment required in Britain’s infrastructure over the period to 2020. Unless Ofgem get the proposals for financeability right and the returns are appropriate, the companies’ ability to finance an unprecedented increase in investment, which is vital to the country’s infrastructure, will become an impossible task.”
The consultation covers the price reviews of both the gas transmission and distribution and the electricity transmission companies which will take effect from April 2013 through to March 2018.
Mr Smith said: “The industry is scrutinising the consultation documents carefully and support those aspects of them that will help Great Britain’s energy network companies support our low carbon future and deliver value for the consumer.”
The paper will be followed by a decision document in March which will outline the proposed strategy for the review and decisions on a number of important review parameters.
ENA represents the ‘wires and pipes’ transmission and distribution network operators for electricity and gas in the UK and Ireland.