Price control reviews for gas and electricity system operators

Ofgem notice (2 pages, PDF) that it has asked National Grid to propose its own price controls for its gas and electricity system operation functions, running its own consultation of interested parties without a significant Ofgem involvement, as an "experiment".

If the new process has gone well Ofgem may be better placed than in previous years to propose and implement proposals that are good value for National Grid and for customers. If the new process has not been effective or if Ofgem has concerns that key cost and risk issues have not been addressed by stakeholders, Ofgem may choose to implement a different scheme to that proposed by National Grid. However, we think it is highly unlikely that we will be in a worse position at the end of National Grid’s consultation process than we would be under the traditional process ...

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, Ofgem, Price controls.

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