The regulator’s plans to allow energy network companies to charge households more than it had said previously turned up the lights at SSE and National Grid yesterday. Shares in the two FTSE 100 companies rose after Ofgem relaxed the shackles that had been clamped around their pricing models. Included in every household’s energy bill is a levy that goes straight to SSE, National Grid and other network operators to cover the cost of new electricity cables and repairing gas pipelines. It works out to about £159 a year at then moment, although Ofgem’s changes means that this will fall to closer to £149 from 2021. Still, that’s better — for the likes of SSE and National Grid, at least — than the £20 reduction that the regulator had proposed over the summer, which didn’t go down too well with industry bosses. They wanted to be able to spend more upgrading infrastructure (and to make more money from doing so). Now Ofgem has relented somewhat and its move has been welcomed by City analysts.
Times 10th Dec 2020 read more »