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UKPN awarded £3m for successful low-carbon schemes

UK Power Networks (UKPN) has been awarded a total of £3.1 million by Ofgem for completing two low-carbon projects on time and significantly under budget.

Ofgem today awarded a successful delivery reward of £2.1 million to the Low Carbon London project, which has delivered a scope of work originally estimated as £28.3 million for a total cost to customers of only £14.9 million.

The Flexible Plug and Play project was granted just under £1 million for meeting all of its learning outcomes within the agreed original budget of £8.8 million.

Low Carbon London tested new ways for urban electricity networks to support low carbon technologies like electric vehicles, heat pumps and solar panels, while Flexible Plug and Play looked at connecting distributed generation such as wind or solar power to constrained areas of the electricity distribution network.

Ofgem only allows a successful delivery award when a DNO can prove that the project has met its agreed output to a sufficient standard, on time and in a cost-effective way.

The firm said it invested company and consumer funding in both projects and Ofgem’s successful delivery reward “represents a return on that initial investment”.

UKPN head of future networks Martin Wilcox said the firm was “delighted” Ofgem has recognised the projects were “well-run, cost-efficient and delivered savings for consumers”.

The DNO said it will now apply the lessons learned from the projects to continue improving the way the electricity network is run to “deliver the best service possible for our customers”.