Ofgem proposes volume drivers for load-related expenditure by DNOs

Ofgem has proposed to introduce two new automatic volume drivers to manage uncertainty over required levels of load-related expenditure by electricity distribution networks as part of its draft determinations for the RIIO ED2 price controls. The regulator said the uncertainty mechanisms are necessary to prevent asset stranding, while also avoiding the risk of underinvestment in new network capacity that could stifle the uptake of low-carbon technologies.

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