Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Ofgem Office of Gas and Electricity Market : publishes 2020 Annual Iteration Process for the electricity distribution network price control

11/27/2020 | 07:23am EST

Ofgem has today published the results of the 2020 Annual Iteration Process (AIP) for electricity distribution network companies (1) under its network price controls.

As part of the 'Revenue = Incentives + Innovation + Outputs' (RIIO) price controls for network companies, we make annual adjustments to the revenue that we allow the electricity distribution network companies to collect through the AIP.

The AIP updates base revenues across Ofgem's price controls for the next regulatory year (2021/22).

This year's AIP has reduced the allowed revenue that electricity distribution network companies will collect relative to the assumptions made at the start of the price control by around £256.6 million (2019/20 prices), saving consumers money on their bills. This reduction is driven by the following factors:

  • Cost of Debt - Lower interest rates in debt markets have resulted in a lower cost of debt allowance compared to the level set at the start of the price controls.
  • Allowed Expenditure - On the whole, network companies are spending less than the amounts assumed at the start of the price controls, therefore we make a proportionate reduction to their allowed revenue.
  • Pensions reasonableness review - Pension allowances have reduced following the triennial revaluation of the companies' defined benefit pension schemes. This has led to networks having to pay lower costs to repair deficits that exist in their schemes. All these schemes are now closed to new members, but continue to accrue obligations in respect of pensionable service of remaining members.

We have published updated Electricity Distribution Price Control Financial Model (PCFM) for the Electricity Distribution 1 price control: RIIO-ED1 Financial Model following the Annual Iteration Process 2020.

Notes to editors

(1) The final AIP for the RIIO-1 Gas Distribution and Transmission sector price controls was the November 2019 AIP. New RIIO-2 price controls for those sectors are due to begin in April 2021. Allowed revenues for 2021/22 Gas Distribution and Transmission will be published as part of our Final Determinations for the RIIO-2 price controls for these sectors.

For further press information

For media, contact

Ruth Somerville: 0207 901 7460/ 07990 139504

Media out of hours mobile: 0792 882 9894 (media calls only)

Disclaimer

Ofgem - Office of Gas and Electricity Market published this content on 27 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 November 2020 12:22:03 UTC


© Publicnow 2020
Latest news "Economy & Forex"
02:20pMexican Retailers Curb Investment Plans for 2021
DJ
02:12pU.s. cdc says 1,908,256 doses of covid-19 vaccine administered in long-term care homes as of jan 20 vs 1,745,441 doses administered as of jan 19
RE
02:12pU.S. CDC Says Administered 16.5 Million Doses Of Covid-19 Vaccine As Of Jan 20
RE
02:12pU.s. cdc says 2,161,419 individuals have received two doses of covid-19 vaccine as of jan. 20 vs 2,023,124 individuals as of jan. 19
RE
02:11pU.s. cdc says 14,270,441 individuals have received one or more doses of covid-19 vaccine as of jan. 20 vs 13,595,803 individuals as of as of jan. 19
RE
02:11pU.s. cdc says administered 16,525,281 doses of covid-19 vaccine as of jan 20 vs 15,707,588 doses administered as of jan 19
RE
02:10pU.s. cdc says distributed 35,990,150 doses of covid-19 vaccine as of jan 20 vs 31,161,075 doses distributed as of jan 19
RE
02:10pFACEBOOK : Google's advertising practices targeted by EU antitrust probe
RE
02:02pArauz would conduct a review of whether mining companies have complied with environment rules and investment plans
RE
02:02pEcuador president hopeful Arauz would scrap IMF economic program
RE
Latest news "Economy & Forex"