Ofgem has launched a £17bn upgrade proposal for UK’s electricity network, linking small scale renewable energy projects to the grid.
According to the decision, five out of six firms that manage Britain’s local electricity network will execute the work to recover consistency and hasten latest connections to the network.
On merging the new platform with the business plan from Western Power Distribution will make the total projected investment in the next eight years to £24bn.
From 2015, compensation payments given to customers who go through power cuts will be escalated from £27 to £70.
The program will receive a back- up from Ofgem’s Low Carbon Network Fund, which will supply around £900m of profits to consumers caused by the placement of latest smart grid technologies.
In 2013, Ofgem banned five network companies’ price control offers due to their mismanagement for delivering proper value and since then, £2.1bn has been cut from the proposals.
Today’s plans represent good value for consumers. There will be significant investment in Britain’s electricity network, and reduced pressure on bills, said, Dermot Nolan, chief executive, Ofgem.
Ofgem expects network companies to step up and take a more visible and active role in helping customers, particularly the most vulnerable, he added.
Sabeena Wahid
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