Thursday 18 August 2016

Ofgem proposes £185m budget cut for National Grid

Ofgem has proposed a reduction of £185.4 million on National Grid’s allowances for gas and electricity transmission projects.

The regulator has proposed a cut of £168.8 million as the Avonmouth gas pipelines planned to be built, are no longer needed.

It also proposes a reduction worth £38.1 million for electricity transmission works.

The announcement follows a mid-period review into some gas and power transmission projects Ofgem launched in May.

However, the regulator said it recognises National Grid's efforts towards a low carbon system and will allocate an extra £21.5 million to help the distributor manage additional supply and demand balancing services.

Ofgem said it will make a final decision over its proposals in autumn and changes to National Grid’s revenue would take effect from April 2018.

ELN contacted National Grid for a response.