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News Regulation Networks

Ofgem proposes to approve £75m in DNO funding requests

Image: Ofgem

Image: Ofgem

Ofgem has opened a consultation on 12 requests for funding adjustments totalling £322 million under the RIIO-ED1 price control.

In certain circumstances, distribution network operators (DNOs) can apply for additional funding to cover significant and additional costs which had not been forecast when the price controls were set.

All six of the UK’s DNOs submitted requests during the May 2019 window.

Submissions from Electricity North West, SP Energy Networks (SPEN) and Western Power Distribution for street works totalling £25 million are to be approved under the proposals.

Another £16 million is set to be approved for the electrification of the Great Western Railway line by Scottish and Southern Energy Networks and £30 million for cable replacement.

However, the regulator is proposing to reject a £45 million submission from SPEN to increase network capacity in anticipation of an increased number of EVs on the network.

The funding would have been used to invest in the deployment of wide-scale monitoring of the low voltage network and in the accelerated reinforcement of the network where innovative solutions are unable to accommodate EV uptake.

Ofgem is also proposing to not accept a request from SPEN for £70 million for cable repairs.

The consultation closes on 30 August, with Ofgem aiming to publish its final decisions in October 2019.

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