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Vattenfall gets UK distribution networks licence

Staff Writer |
Swedish energy utility Vattenfall has won a distribution networks operator licence from Britain's energy regulator Ofgem and will start operating in the competitive UK market in 2018, Vattenfall said.

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Vattenfall, one of the biggest wind energy producers in Britain with capacity nearing 1 gigawatt (GW), formed a unit to own and operate the networks to meet the licence requirements.

The company would not seek to link up with existing distributors but, like them, it has to be careful with its cost structure in the British market, Annika Viklund, senior vice president of Vattenfall distribution, told Reuters.

A potential price cap on the retail energy sector in Britain would challenge energy firms to innovate, Viklund said. "We are not concerned. I think it will sharpen competition," she added.

The British government asked energy market regulator Ofgem this month to come up with a price cap on the retail energy sector that would last until 2020.

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