UK proposes to cut income for electricity companies: one of the affected networks of SP Energy, a subsidiary of Iberdrola

The Gas and Electricity Markets Office (Ofgem, for its short in English) Suggest Reduction in the level of benefits What do companies get? Electricity network operators In the country for the period from 2023 to 2028 to maintain costs paid by consumers, according to a draft of the new regulatory framework published on Wednesday.

There are a total of 14 electricity distribution network operators in the UK, which in turn are owned by six companies: North West Electricity, British Power Grids, Western Power District, Northern Powergrid, SP . power grids The Scottish and Southern power grids.

According to the document, Ofgem plans to limit the return on capital (earnings) for this type of electricity company by 4.75%. In the current regulatory framework, the benefit limit It lies between 6% and 6.4%. Among those affected was SP Energy Networks, a subsidiary of Iberdrola.

17% discount for all operators

Likewise, the regulator’s battery of measurements has a total maximum of The group of operators 20900 million pounds (24,160 million euros) to invest in maintenance and resilience improvements. This is assumed 17% decrease Compared to what the companies initially suggested.

“We are determined to get the best deal for consumers, and the proposals we published today mean significant additional investment can be made To achieve net zero without any pressure on billing‘,” noted the head of the office, Jonathan Brierley.

Ofgem: “We are determined to achieve the best possible deal for consumers”

The regulator explained that electricity distribution costs are being paid by consumers, who are already facing “extraordinary pressure” on their electricity bills. Ofgem is determined to achieve The best possible deal for consumers It proposes stricter efficiency targets for networks along with a marked reduction in the maximum allowable return, which means that less money from consumers goes to corporate profits.”

Currently, British families pay around £100 (115.6 euros) per year in terms of operating costs, maintenance and strengthening of electrical networks. With these measures, Ofgem aspires to keep the cost to families at this level.