National Grid’s voluntarily deferral of around £480 million of allowed expenditure will lead to savings for customers.
Ofgem said the grid operator would return the amount of its allowances due to deferred investment as some of the activity it thought would be needed as part of its business plan in 2012 is no longer necessary.
The deferral related to £130 million of load related investment and £350 million of asset refurbishment and replacement investment.
The regulator believes that would reduce network charges on consumers’ energy bills by around £100 million between 2019 and 2021.
Kersti Berge, Partner, Networks at Ofgem said: “We welcome this voluntary step by NGET and think it is a positive step that is in the interests of consumers.
“The effect of this will be a relative reduction in network charges from 2019/20 onwards. This will help to reduce energy bills relative to what they otherwise would have been.”