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Ofgem Cut Costs of New Hinkley Point Grid Link

Power News - Published on Wed, 16 Oct 2019

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Ofgem plans to grant National Grid Electricity Transmission GBP 637 million to build the transmission link, compared to NGET’s initial request for GBP 717 million. Ofgem reduced the allowed funding after rejecting GBP40 million in risk funding NGET had sought to be included in the upfront cost of the link. Ofgem also does not intend to allow all the additional costs associated with the new ‘T-Pylons’ used on the route. It is not satisfied that NGET has sufficiently justified all these costs or demonstrated that they represent value for money for consumers.

Ofgem plans to use its network price control framework to allow NGET to fund the investment and recoup the cost from consumers’ energy bills over 45 years.

Ofgem will make a final decision on the allowed cost and whether to use the RIIO2 price control model for delivering the upgrade following a six-week consultation period.

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Posted By : Rabi Wangkhem on Wed, 16 Oct 2019
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