To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking with Ofgem to ensure that investment decisions taken by the Distribution Network Operators are based on comprehensive, whole life cost benefit assessments; and if will make a statement.
8 September 2020
Energy network companies are regulated by the independent energy regulator, Ofgem, to ensure that they adequately maintain a safe and secure network whilst investing for the future and ensuring a fair price for consumers. In order to do this, Ofgem uses price controls to determine the revenues network companies may recover, the investment they may make and the performance standards they must deliver. Network regulation, including approval of investment decisions, is a matter for Ofgem as the independent regulator. Ofgem is currently developing the next electricity distribution price control, consulting with stakeholders during this process.