The head of Britain’s energy regulator has sought to defuse a row with network companies including National Grid over permitted profits, after being accused of risking blackouts and the country’s climate ambitions, reported the Financial Times.
Jonathan Brearley, the new chief executive of Ofgem, has been the target of fierce criticism from energy network groups since July, when the regulator proposed to cut the annual rate of return such businesses would be allowed to make from April to 3.95%. This is the lowest level since privatization, and nearly half the rate permitted under the current regulatory regime, which has been in place since 2013.
Ofgem also proposed to cut network companies’ spending plans by £8 billion (US$10.43 billion), leading to industry suggestions that the regulator was threatening jobs at a time the government was hoping to encourage a “green recovery.”
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