Ofgem to re-examine its overall approach to price controls

Ofgem announcement (2 pages, PDF) of a two-year review of the price control regime for energy networks.

Ofgem says that:

Companies and capital markets can assume that, because the review will not report until 2010, work for the next price controls for electricity distribution – due to come into play in 2009 – will not be affected. And the framework for those price controls will be published shortly.

More information on the review is available as a speech (19 pages, PDF) and presentation (31 slides, PDF). This highlights a large number of potential problems and suggestions that have been made (including a comment that the merger tax "needs a review").

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, Gas, Ofgem, Price controls.

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