Disappointment as Ofgem postpones price review

21st Dec 2009 12:24

National Grid is 'disappointed' with today's decision by Ofgem to postpone the next transmission price control review (TPCR5) for a year until 2013.The energy regulator said Monday it will extend the 2007-2012 gas and electricity transmission price control by one year so that it will now run until the end of March 2013.'We are disappointed at the decision,' said the gas and electricity pipeline grid operator. 'While we support Ofgem's RPI-X@20 project to review the way the energy industry is regulated, it is important to settle the long term transmission investment regime as soon as possible since it is key to connecting up new low carbon generation and maintaining security of supply.''However, we remain committed to work with Ofgem on both the roll over of the current regime and on TPCR5 to ensure there are strong incentives on the transmission companies to make the right investments in an economic and efficient manner.'The transmission price control sets the maximum amount of revenue which the four energy transmission companies, National Grid Electricity Transmission Ltd, National Grid Gas, SP Transmission and Scottish Hydro-Electric Transmission, can earn from charges to customers using the the high-voltage electricity networks and the national high-pressure gas main.'Ofgem considers the extension of the current price control will ensure the conclusions of its RPI-X@20 project and other relevant developments in the transmission sector are reflected in the next control,' the regulator said in a statement.A full decision document setting out the reasons for the extension of the price control and the way forward will be published in January.