Ofgem sets electricity pricing controls, SSE disappointed

30th Jul 2014 07:45

Household electricity bills are due to fall by around £12 a year after energy regulator Ofgem set industry pricing controls for the next eight years.The regulator said on Wednesday that it had proposed price control settlements for five of the six national electricity providers - Electricity North West, Northern Power Grid, SP Energy Networks, Scottish and Southern Energy Power Distribution (SSE PD) and UK Power Networks.Ofgem's proposals, which will remain under consultation for the next eight weeks before coming into effect in April 2015, would also see the companies spend £17bn to upgrade and maintain the electricity network.Ofgem's Chief Executive, Dermot Nolan, pointed out that setting price controls for companies was "the only part of the energy bill Ofgem directly controls" and the plans set out to provide households with "better customer service and efficient investment at a lower cost for the customer".He added: "Today's announcement is all part of Ofgem's consistent drive to get the best deal for consumers while maintaining a stable regulatory regime which attracts investment as cheaply as possible."Making a quick response, SSE PD, part of SSE, said it was "disappointed with a number of elements" of the proposal, including Ofgem's proposal on efficient financing and their assumptions about the scope of further cost reductions across the industry. Gregor Alexander, Finance Director of SSE, said: "Our aim is to deliver a final settlement that both provides value for money for customers as well as securing the funding required to operate and develop our distribution networks for customers benefit. Through the established price control process, we will now be responding to the draft determination as well as engaging further with Ofgem in order to secure this outcome."OH