Monday 27 November 2017

Gas network firm to ‘give back’ £145m to Ofgem

Gas network firm to ‘give back’ £145m to Ofgem

Gas network company SGN said it won’t be claiming £145 million of allowance agreed under Ofgem’s regulatory allowances for projects.

The firm, which operates in Scotland and the south of England and delivers gas to 5.9 million homes and businesses, said the amount under the price control will either be “no longer required or claimed”.

Ofgem said it will result in £84 million being returned to customers.

The regulator welcomed the voluntary contribution, adding it has secured additional savings of more than £4.5 billion for consumers by a combination of reduced revenues or voluntary contributions from companies.

Jonathan Brearley, Ofgem’s Senior Partner for Networks said: “Network companies require a licence to operate, not just from the regulator but from their own customers who must be confident they are getting good value for money.

“We are signalling again today that energy network companies need to prepare themselves for a tougher round of price controls from 2021 with lower overall returns."

The regulator is encouraging the remaining gas and electricity transmission companies to follow suit.

Written by

Bruna Pinhoni

Trending Articles