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Ofgem lays out plan to help power sector hit £32bn low-carbon goal
ENERGY regulator Ofgem yesterday responded to parliamentary pressure by proposing changes to its network rules to encourage investment in the sector, which requires £32bn to meet low-carbon commitments.
The regulator suggested, among other proposals, to extend price controls for energy networks to eight years from five years, giving investors longer return periods, and to promote incentives for companies that perform well and foster innovation.
“Ofgem is seeking to make regulation smarter by placing more emphasis on financial incentives to deliver efficient innovation and investment over a longer timescale,” Ofgem chief executive Alistair Buchanan said of the regulator’s new model.
Ofgem also proposed penalising poorly performing companies.