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Ofgem confirms it will cut National Grid's spending allowance

Staff Writer |
Energy regulator Ofgem confirmed that it will cut National Grid's spending allowance for running the high voltage electricity grid and high pressure gas main by £185 million.

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Ofgem will reduce National Grid's allowances for the high pressure gas pipeline price control by £168.8 million because the Avonmouth gas pipelines it planned to build are no longer needed.

In addition, it will cut allowances for the high voltage electricity grid price control by £38.1 million, as less fault protection works are needed due to fewer generators connecting to the high voltage grid.

However, the regulator will allow an additional £21.5 million for system operation.

"The electricity system is going through major changes as we move to a low carbon economy.

"So National Grid (as system operator) has a bigger role to play. This includes providing additional supply and demand balancing services."

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