National Grid has today accepted in principle Ofgem's final proposals for the one-year Transmission Owner price controls for the year ending 31 March 2013.
Steve Holliday, Chief Executive, said:
"We are pleased to be able to agree this one year extension to our existing transmission price controls. This rollover provides extra time for industry to devote sufficient focus to the development of the 8 year RIIO price controls which will address a number of important issues that were rightly deferred from this one year control under the proportionate approach.
The one-year price control recognises the substantial increase in capital investment that our electricity transmission network is experiencing compared to the last price control assumptions. Importantly it begins to remunerate the additional assets, outputs and efficiencies we have delivered over the last 5 years. We are confident that we can continue to deliver this essential and increasing investment programme through the rollover year and beyond. At the same time, we will continue to manage our UK transmission networks in a safe, reliable and sustainable way within a framework that that balances the requirements of investors while delivering the essential needs of consumers."
Contact for media information only:
Chris Mostyn - T: 020 7004 3149 E: chris.mostyn@ngrid.com
Isobel Rowley - T: 01926 655275 E: isobel.rowley@uk.ngrid.com
Notes to Editors:
National Grid
National Grid (LSE: NG; NYSE:NGG) is an electricity and gas company that connects consumers to energy sources through its networks. The company is at the heart of one of the greatest challenges facing our society - to create new, sustainable energy solutions for the future and developing an energy system that underpins economic prosperity in the 21st century. National Grid holds a vital position at the centre of the energy system and we ‘join everything up’.
In Britain, we run the gas and electricity systems that our society is built on, delivering gas and electricity across the country. In the North Eastern US, we connect more than seven million gas and electric customers to vital energy sources, essential for our modern lifestyles.
National Grid in the UK:
• We own the high-voltage electricity transmission network in England and Wales, operating it across Great Britain
• We own and operates the high pressure gas transmission system in Britain
• Our gas distribution business delivers gas to 11 million homes and businesses
• We also own a number of related businesses including LNG importation, land remediation and metering
• National Grid manages the National Gas Emergency Service free phone line on behalf of the industry - 0800 111 999 (all calls are recorded and may be monitored).