Ofgem’s announcement that it is planning to spend £22 billion on improving the UK’s energy infrastructure has been met with criticism by National Grid. In an immediate response to the energy regulator’s proposals, National Grid described the investment amount as not enough ‘...to provide safe, reliable networks (and) build the energy system that our customers will need in the future, whether in transmission or distribution infrastructure.’
National Grid puts the actual investment amount required at £30.7 billion, to be spent between 2014 and 2021 to avoid delays in meeting UK renewable energy and climate change targets.
Ofgem plans to split the £22 billion investment across two areas:
- £15 billion would go towards upgrading the high voltage electricity network in England and Wales; upgrading high pressure gas networks; and constructing new undersea power cabling to link England, Scotland and Wales.
- The remaining £7 billion would be used to upgrade the low pressure gas network, which pipes gas into homes and businesses.
These proposals would cost consumers around £11 a year in increased energy bills, but on a positive note, would also enable 7,000 new jobs to be created.
Wilding says:‘It’s good to see Ofgem increasing its investment plans from the initial £17 billion. However, we share National Grid’s concerns that £22 billion may not be enough to upgrade our energy systems to the required levels and enable us to meet our environmental targets. ’
Source: The Independent
