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Ofgem allows National Grid to recover cost from customers for pipeline

Staff Writer |
UK energy regulator Ofgem on Friday allowed National Grid to claw back some costs for work carried out, but denied another similar request.

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National Grid had been seeking permission to recover around GBP140 million from consumers for replacing a gas pipeline in the Humber estuary, and Ofgem had told the FTSE 100-listed firm to show why this would help consumers.

Since receiving new information, Ofgem has decided to allow National Grid to recover GBP111 million from consumers.

However, it has rejected a request from National Grid to recover GBP123 million from consumers for work maintaining gas compressors. Ofgem has allowed just GBP500,000 to be recovered.

Also, Ofgem said National Grid, alongside Wales & West Utilities and Cadent Gas Ltd, can recover GBP96 million combined for work to improve street works, cyber security, and for compensating landowners.

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