OFGEM recently CALLED FOR EVIDENCE from stakeholders on network company electricity transmission business plans, and SEAS have pointed out many failings in NGET’s business plan.
READ the Full SEAS Response HERE
Ofgem sets the price controls to ensure that monopoly network companies, who run Great Britain’s gas and electricity networks (such as National Grid Electricity Transmission, NGET), continue to act in the best interests of existing and future energy consumers.
In order to set the next price control framework (RIIO-3: Revenue = Incentives + Innovation + Outputs) Ofgem requires network company business plans (BPs) to provide information to Ofgem on their intended activities and forecast costs and outputs from 2026-2031. Ofgem set an allowed revenue for network companies for the RIIO-3 period (2026-2031), which is recovered through network charges that make up around 20% of consumers’ energy bills.
SEAS have responded with our key areas of concern, the issues and failings we have found with NGET’s business plan, with reference to Ofgem’s mandatory BP requirements, and specific reference to the Sealink statutory consultative process and the DCO processes for EA1N and EA2:
- NGET’s failure to put community stakeholder views ‘at the heart’ of the process of Business Planning, and failure to deal adequately (or in some cases, at all) with consultation responses.
- NGET’s failure to engage with ‘host’ communities before transmission network design options have been decided.
- The resulting lack of overall accountability and transparency in the business process.
- Lack of consideration of Environmental Impacts.