Ofgem Grants GBP80 Million Less Than Requested for Hinkley Point Transmission Link
October 15 2019 - 3:56AM
Dow Jones News
By Adria Calatayud
The U.K.'s energy regulator Ofgem said Tuesday that it plans to
grant National Grid PLC (NG.LN) 80 million pounds ($100.7 million)
less than requested to connect the new Hinkley Point C nuclear
reactor to the electricity grid.
The regulator said it plans to grant GBP637 million to National
Grid to build the transmission link compared with the company's
initial request for GBP717 million.
Ofgem said it rejected GBP40 million in risk funding that
National Grid had sought to be included in the upfront cost of the
project, but said that the company may still be in a position to
seek additional financing for some risks if they are efficiently
managed and take place during construction.
The regulator said it plans to use its network price control
framework to allow National Grid to fund the investment and recoup
the cost from consumers' energy bills over 45 years. Ofgem said
most of this investment will be covered by RIIO2--the next network
price control framework which takes effect from March 2021 to 2026
for electricity transmission.
Ofgem said it will make a final decision on the allowed cost and
whether to use the RIIO2 price control model for delivering the
upgrade after a six-week consultation period.
In response to Ofgem, National Grid said it will be looking to
provide further evidence to support its view of the capital costs
for this project. Delivery of the project is progressing well and
isn't affected by these consultations, the company said.
National Grid shares at 0757 GMT were up 1.1% at 893.30
pence.
Write to Adria Calatayud at
adria.calatayudvaello@dowjones.com
(END) Dow Jones Newswires
October 15, 2019 04:41 ET (08:41 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
National Grid (NYSE:NGG)
Historical Stock Chart
From Apr 2024 to May 2024
National Grid (NYSE:NGG)
Historical Stock Chart
From May 2023 to May 2024