Ofgem publishes draft determination for National Grid’s RIIO-ET3

Published 01/07/2025, 07:16
Ofgem publishes draft determination for National Grid’s RIIO-ET3

LONDON - Britain’s energy regulator Ofgem has published its draft determination for National Grid ’s (LSE:LON:NG.) electricity transmission business covering the five-year period from April 2026 to March 2031, the company announced Tuesday.

The draft determination outlines Ofgem’s proposed decisions on awarding allowances for a subset of projects included in National Grid’s December business plan submission, with remaining projects expected to be confirmed through in-period processes.

National Grid said it continues to expect to invest approximately £60 billion across the Group over the five years to March 2029, maintaining its previous investment outlook despite the partial nature of the current determination.

The company acknowledged Ofgem’s recognition of the need for significant network investment and an investable framework to support delivery, but noted that "progress is needed on incentive opportunities" that benefit both consumers and support investability.

"We will now review the detail contained within the Draft Determination to assess whether it delivers an investable overall financial package," National Grid stated in its press release.

The company said it will continue working with Ofgem toward the Final Determination expected in December 2025, aiming to secure a price control agreement that ensures "reliable and affordable flow of clean electricity whilst also meeting the ramp-up in demand for power."

National Grid emphasized that a "resilient, future-proofed network will be critical to economic competitiveness and growth for Britain in the years ahead."

The RIIO-ET3 price control will set the framework for National Grid’s electricity transmission business operations and investments for the five-year regulatory period beginning in April 2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.