These latest proposals will do little to ease the ire of many energy network companies as they reaffirm Ofgem’s commitment to keeping costs down for consumers and their expectation of lower returns to investors.
Ofgem claims the moves will help keep the costs of delivering a greener economy down for consumers but several energy network companies have expressed their concerns over the regulators recent green policies.
Earlier in July, Ofgem set out its price controls that dictate how much money gas and electricity companies can earn.
Under its latest proposals, which run from 2021 to 2026, companies will be allowed to spend £25 billion on improving gas and electricity networks and recoup this cost from customers.
However, in order to keep costs down for consumers, Ofgem said that the return energy firms will be allowed to make from their investments will be nearly halved.
"This proposal leaves us concerned as to our ability to deliver resilient and reliable networks and jeopardises the delivery of the energy transition and the green recovery," said a National Grid spokesperson.
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