(The following is a reformatted version of a statement issued by Ofgem and received via e-mail. The release wasn't confirmed with the sender.) March 28 -- Energy regulator Ofgem has launched its fifth electricity distribution price control review for 2010-2015 with the publication today of its first consultation document. The price control sets the revenues distribution companies (DNOs) can collect from their customers and places a number of incentives on DNOs. Distribution charges currently stand at around £3.5 billion a year accounting for around 17 percent of a typical domestic customer's electricity bill. Ofgem's proposals include the following key priorities: encouraging DNOs to be more responsive to the needs of customers; giving DNOs strong financial incentives to help tackle climate change; and delivering good value for consumers by ensuring that DNOs provide secure and more sustainable networks. To ensure customers' needs are reflected in the price control Ofgem is encouraging all DNOs to consult with local communities before submitting their business plans for 2010-2015. Ofgem is also exploring ways to introduce greater consumer involvement in the price control process. Ofgem wants DNOs to be more in touch with the needs of their customers, not least because of the growing customer interest in managing their own energy use, for example by installing microgeneration. Demand side management could have a significant impact on the way the DNOs invest and run their networks. The new price control will need to be flexible as tackling climate change and responding to customers' requirements could lead to profound changes in the way distribution networks are run. For example, it is likely that there will be growth in renewable and small-scale distributed generation. This could see much more generation connecting directly to the distribution network rather than the national grid. AR (Lo) -ENDS- #<234316.45586126.96.36.199.26862.76>#
OFGEM STARTS ELECTRICITY DISTRIBUTION PRICE CONTROL REVIEW
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