(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
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.
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