Initial proposals for electricity distribution prices from 2010

Ofgem consultation (64 pages, PDF; 250 pages, PDF; 124 pages, PDF; 95 pages, PDF; 96 pages, PDF; 31 slides, PDF; and more) on GB electricity distribution price controls to apply from 1 April 2010 to 31 March 2015.

Ofgem proposes to capitalise 85 per cent of all network operating and capital expenditure for price control purposes. No proposals are made for the rate of return to be allowed on that notional regulatory capital: the illustrative figures in the document are said to use “the DPCR4 Vanilla WACC of 5.55 per cent purely as a modelling assumption”.

Responses by Monday 14 September 2009. Ofgem's stated next steps are an update in September 2009, an update on pension cost issues in October 2009, and final proposals in late November 2009.

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, Ofgem, Price controls.

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