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
Longer, more frequent outages afflict the U.S. power grid as states fail to prepare for climate change
WASHINGTON - Every time a storm lashes the Carolina coast, the power lines on Tonye Gray’s street go down, cutting her lights and air conditioning. After Hurricane Florence in 2018, Gray went three days with no way to refrigerate medicine for her multiple sclerosis or pump the floodwater out of her basement.
What you need to know about the U.N. climate summit — and why it matters
“Florence was hell,” said Gray, 61, a marketing account manager and Wilmington native who finds herself increasingly frustrated by the city’s vulnerability.
“We’ve had storms long enough in Wilmington and this particular area that all…
