Ofgem has announced it has reduced the revenues that energy network operators are allowed by £510.5 million for the next year.
The regulator makes annual adjustments for revenues they can collect from customers.
The decision to reduce the allowed revenue is due to less spending required to deliver outputs, lower interest rates in debt markets and therefore lower cost of debt allowance, Ofgem states.
The adjustments have been published in its ‘2016 Annual Iteration Process (AIP) for energy network operators under the RIIO (Revenue, Incentives, Innovation. Outputs) price controls’.