Licensing of non-independent distribution networks

Ofgem consultation (8 pages, scanned PDF) on whether any special licence conditions are needed for an affiliate of a main distribution network operator that applies for an independent distribution network operator licence in the same area. Ofgem's concerns include a risk that such dual licensing could enable a network operator to include only the most expensive network extensions within the scope of the costs recovered through the distribution price control, whilst retaining the full margin between the regulated price and the actual costs for low-cost extensions built by the independently licensed arm. Responses by Friday 26 May 2006.

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, Ofgem, Price controls.

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