Ofgem has responded to requests by several energy network companies regarding adjustments to their funding.
The decision follows the energy regulator’s consultation on the requests in August – it rejected the majority of National Grid’s request to recover £123 million on maintaining gas compressors, allowing it to recover only £500,000 of this money from customers.
Ofgem originally proposed to refuse National Grid’s request to recover around £140 million for replacing a gas pipeline across the Humber Estuary – the company provided new evidence suggesting the resilience of the wider energy system could be impacted if the pipeline isn’t replaced.
As a result, Ofgem has now decided to allow National Grid to recover only £111 million in costs of replacing the pipeline, as Ofgem considers that the project can be delivered more efficiently.
Ofgem has also confirmed National Grid, Wales and West Utilities and Cadent can recover an additional £96 million for improving resilience to security threats, managing street works and compensating landowners for disruption.