Tighter rules for network firms to save £5bn on energy bills

The price controls will come into force in 2021 and are also expected to significantly reduce the profits made by network companies

Ofgem signals tougher price controls for energy networks

Ofgem has warned energy network operators to brace themselves for a tougher round of price controls from 2021. The regulator believes there is “strong evidence” that investors are “increasingly willing” to accept lower returns from longer term investments in regulated infrastructure. Price controls are needed as these networks are monopolies and therefore there is no […]

Ofgem warns potential buyers of gas network assets

Ofgem has published an open letter with a warning to potential buyers of gas distribution network assets. The sale include a majority stake in National Grid’s four gas distribution networks and part of SSE’s equity stake in SGN, which distributes gas across Scotland and the south of England. Ofgem regulates these businesses under the RIIO-GD1 […]

£17bn spending to revamp power networks

Five of the nation’s six network companies will be spending £17 billion to maintain their electricity lines and connect small renewable energy projects to the grid. Ofgem announced on Friday it rubberstamped the cash after first sending the firms back to the drawing board to shave £2.1 billion off their plans. Electricity Northwest, Northern Powergrid, UK […]

Ofwat proposes 5% fall in water bills

Consumers in England and Wales could see a 5% drop in water bills between 2015 and 2020 under draft proposals published by Ofwat. The figure, which excludes inflation, is based on the regulator’s draft determination on price controls. Water companies are expected to invest more than £43 billion – or almost £2,000 for every household […]

Ofgem’s proposals ‘to cut electricity bills by £12 a year’

Millions of people across the UK will see their electricity bills reduce by £12 on average every year from April 2015. That’s according to Ofgem, which has set out its proposals to control electricity pricing for five of the six companies that run Britain’s local electricity network. The regulator plans to limit the prices they […]

Water bills could drop in Northumbria and Wales next year

Some water customers’ bills could reduce during the last five years of the decade as part of the draft determinations published by Ofwat today. The water regulator has revealed the prices Northumbrian Water and Dŵr Cymru can charge their customers for water and sewerage services as part of the 2014 price review, which lays out […]

Cheers! N Irish power prices to be squashed

It’s almost worthy of celebrating with a pint of stout – as Northern Irish energy company NIE has been told to snip its electricity prices by the Competition and Markets Authority (CMA). The company which owns the electricity transmission and distribution network in Northern Ireland will have to take down its prices by around £10. NIE’s charges […]

National Grid sees UK profit rise 7.7%

National Grid saw operating profit in its UK arm rise in the first six months of 2013 after increasing the amount it charges energy customers. Profit was up 7.7% in the first half of the financial year however a poor performance in the US market dragged the company’s overall profits down. Its total operating profits […]

Ofgem’s new rules for £30bn network upgrade in force now

Ofgem’s new rules on how much energy network companies can charge to support more than £30 billion worth of infrastructure investment plans put forward by them have come into effect this week. The price controls, known as RIIO-ED1 (Revenue = Incentives + Innovation + Outputs-Electricity Distribution), determine the amount network operators can charge for their […]