Ofgem proposes to reduce National Grid’s allowance by £185mn
Ofgem has proposed to reduce National Grid’s (NG) RIIO-T1 allowance by £185mn, following a mid-period review. In a consultation published on Thursday 18 August, the regulator explained that, since the start of the RIIO-T1 price control in 2013, the money allocated to NG for a number of elements had required revision. Consequently, it is further proposing to reduce NG’s fault level protection allowance by £38.1mn and to increase its system operator allowance by £21.5mn to cover its management of additional balancing services. Views are sought by 6 October, with the aim of introducing revenue changes from 1 April 2018.