Ofgem has unveiled proposals for a five-year investment program of about £25 billion ($31 billion) to transform Britain’s energy networks to deliver emissions-free green energy.
This investment will also help generate green growth and employment.
Given the scale of green investment likely to be needed in future, Ofgem is keeping costs as low as possible for consumers by proposing the lowest-ever rate of return on capital for network companies, and pushing companies to be much more efficient in how they run themselves.
“Ofgem is working to deliver a greener, fairer energy system for consumers,” said Jonathan Brearley, CEO of Ofgem. “This is why we are striking a fair deal for consumers, cutting returns to the network companies to an unprecedented low level while making room for around £25 billion [$31 billion] of investment needed to drive a clean, green and resilient recovery.”
He added: “Now more than ever, we need to make sure that every p