Lower electricity demand and fewer grid connections will reduce consumers bills

[ALEO Admin]

Ofgem has set out how proposed reductions in National Grid and distribution network companies’ allowances will benefit consumers.

National Grid announced in March that it will voluntarily defer £480 million of its allowed expenditure, reducing network charges on consumers’ energy bills by around £100 million between 2019 and 2021. This deferred expenditure is possible due to lower electricity demand and fewer new connections needed than forecast during National Grid's current price control.

Ofgem has set out separate proposals to make reductions to distribution network owners’ (DNOs) allowances, totalling £206.8 million. This would result in reduced network charges on consumer energy bills for the remainder of the period covered by the RIIO-ED1 price control (2015-2023). Ofgem also proposes to reduce allowances by a total of £132.2 million across Western Power Distribution’s (WPD) East Midlands network and two of UKPN’s networks.

For more information see:
https://www.ofgem.gov.uk/publications-a ... -consumers