Ofgem published its final determinations for DNOs last week. The regulator allowed the networks a total of £22.2bn investment between 2023 and 2028, claiming this amount would allow for the scale of investment required without adding to customers’ bills.
However, the DNOs had initially asked for £3.16bn of ‘load-related expenditure’ – the portion of investment that covers network reinforcement. Experts say reinforcing the UK’s ageing electricity network will be vital with millions of electric vehicles and heat pumps due to be rolled out in the coming years.
Ofgem had proposed allowing DNOs £2.83bn of load-related expenditure in their draft determination this summer, but the regulator’s final decision was £2.62bn. This decision came just months after an analysis from E&T revealed a potentially huge investment gap that threatened the UK’s net-zero ambitions, with electricity demand set to increase by more than 70 per cent by 2050.
Ofgem says it has...