(Alliance News) - National Grid PLC on Wednesday said its UK electricity distribution business, Western Power Distribution will submit its final business plan to energy regulator Ofgem for the RIIO-ED2 price control period, which runs over five years from 2023 to 2028.
Shares in the FTSE 100 gas and electric utility were down 1.0% at 996.70 pence on Wednesday in London.
Western Power's plan has a baseline capital expenditure and operational expenditure spend of GBP6.7 billion over the period, reflecting a 30% rise from the levels seen in the ED1 period.
This investment is expected to fund Western Power's commitments to provide a further 1.5 million electric vehicles and 600,000 heat pumps.
The price controls of Ofgem set the revenue monopoly electricity network owners can earn from charges on consumers' energy bills.
"The plans include a financial framework that takes account of recent regulatory precedent as well as the uncertainty around the pace of the energy transition and the impact it will have on electricity distribution investment. Given this, it is critical for all stakeholders that we have the right incentives, and an appropriate level of return, to attract the investment required to enable net zero goals," National Grid stated.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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National Grid (NG.)