Ofgem has allowed £64 million of funding requests by electricity distribution network companies.
The regulator has consulted on 12 requests for additional funds by network companies for adjustments in their funding under the RIIO-ED1 price control – it has approved £45 million to fund street works activities by Electricity North West, Northern Powergrid, Scottish Power Energy Networks, UK Power Networks and Western Power Distribution.
It has also allocated £16 million additional funding to Scottish and Southern Energy Networks for diversions required to facilitate the electrification of the Great Western Railway line and £3 million to Northern Powergrid to invest in sites that require physical site security upgrades.
Ofgem refused around £258 million for projects that it considers are not justified or provide poor value for money, including £67 million in other street works funding requests, a £30 million request from Scottish and Southern Electricity Networks for cable replacement at Pentland Firth East and £70 million sought by Scottish Power Energy Networks for cable repairs.
Dermot Nolan, CEO of Ofgem, spoke to ELN at Energy UK’s annual conference earlier this week – he said the regulator must work to facilitate the country’s decarbonisation.