Power firms agree Ofgem price controls
All seven of Britain's electricity network distributors have accepted Ofgem's final proposals for 2010 to 2015 price controls.
Under the terms of the agreement, signed today (January 8) the businesses will be able to invest up to £7.2billion in upgrading networks, according to Ofgem – the industry regulator.
This includes a £500m ‘sustainability fund’ allowing them to carry out large-scale trials of smart grids and other technology needed to create a low carbon economy.
On average the price rise will mean an increase of £4.30 a year on average across the country and will run from April 1 until March 31 2015.
Senior Partner at Ofgem’s Local Grids, said: “We have set a tough but fair price control for the companies so they can invest to maintain high performance and adapt their networks to the low-carbon economy.
“The package will be delivered at a fair price to consumers who will benefit from improved service.”