Energy firms react against Ofgem’s proposals for the next network price control

Energy companies including National Grid, ScottishPower and Scottish and Southern Electricity Networks Transmission have raised concerns about the regulator’s draft determination

Energy companies including National Grid, ScottishPower and Scottish and Southern Electricity Networks Transmission have raised concerns and criticised the proposals announced yesterday by Ofgem to transform the UK’s energy networks.

In an announcement, National Grid said: “We are extremely disappointed with this draft determination which risks undermining the process established by Ofgem. This proposal leaves us concerned as to our ability to deliver resilient and reliable networks, and jeopardises the delivery of the energy transition and the green recovery.”

Ahead of the final determinations, which are expected in December, National Grid says it plans to press the government regulator to come forward with a framework, which incentivises investment and protects consumers.

ScottishPower Energy Networks has also responded to Ofgem’s proposed settlements for the next network price control, which would into effect in 2021.

SP Energy Networks CEO Frank Mitchell said: “This was Jonathan Brearley’s first big test as the new Ofgem Chief Executive and he’s flunked it.

“Instead of backing Britain he has put Britain in the slow lane of leading economies. We were ready to invest more to create green jobs, increase opportunities for the under 25s through apprenticeships, accelerate zero carbon for our customers and back Britain. Over 80% of our customers support our plans.”

Scottish and Southern Electricity Networks Transmission (SSEN Transmission), the wholly-owned subsidiary of SSE plc said it is ‘deeply disappointed and deeply concerned’ by the publication of Ofgem’s draft determination which ‘fails to deliver on net zero‘.

Rob McDonald, Managing Director of Transmission, said: Whilst our stakeholder-endorsed and evidence-based business plan was in step with the Government’s low carbon investment ambition, Ofgem’s first pass at a settlement resembles a worrying return to austerity. Ofgem’s Draft Determination is a barrier towards achieving net zero and damaging to the green economic recovery.

“At present the draft settlement does not strike the right balance for all stakeholders and without significant changes during the consultation period, there is a real risk that the critical investment in Britain’s electricity networks will be unnecessarily slowed down by an appeal process via the CMA, which is not in any stakeholders’ interests”.

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