UK watchdog to review some gas and electricity transmission projects
The regulator Ofgem, sets the amount of cash given to National Grid to maintain and improve the country's gas and electricity networks.
It said the review was needed to establish whether certain energy transmission projects were still needed and required funding.
"Following our consultation in November, Ofgem has today decided to launch a mid-period review into the 2013-2021 price controls which will be limited to National Grid Electricity Transmission and National Grid Gas Transmission," Ofgem said on Thursday.
Ofgem said since the review was targeted to a few projects it would not be re-opening the whole price control package.
"Ofgem's mid-period review announcement this morning should not concern investors, as it is focussed on reviewing 3 specific projects in Transmission," analysts at Bernsteil said in a research note.
"It is not a re-opening of the price control to change crucial aspects such as the allowed cost of capital," they added.
Gas and electricity network operator National Grid made 2.9 billion pounds $4.5 billion in pretax profit in the financial year ending March 31 2015.
Related News
Frustration Mounts as Houston's Power Outage Extends
TEXAS - Houston is enduring significant frustration and hardship as a power outage stretches into its fourth day amid a sweltering heatwave. The extended blackout has exacerbated the challenges faced by residents in one of the nation’s largest and most dynamic cities, underscoring the critical need for reliable infrastructure and effective emergency response systems.
The power outage began early in the week, coinciding with a severe heatwave that has driven temperatures to dangerous levels. With the city experiencing some of the highest temperatures of the year, the lack of electricity has left residents without essential cooling, contributing to widespread discomfort…
