24 September 2007
Energy customers in the UK could profit from upgrades to gas networks and mains replacements after the UK's gas and electricity regulator announced it is to allow £5 billion worth of funding for investment over the next six years.
Ofgem made the announcements in its updated proposals for the 2008 to 2013 Gas Distribution Price Control, which concentrated on urging gas distribution networks to operate more efficiently over the next five years.
Each UK gas distribution network has been asked to invest £628 million per year on operating costs - representing a 13% reduction on the amount they had initially requested from the energy watchdog.
Furthermore, networks are to be given an allowance of up to £60 million to allow research into improving carbon emissions associated with the gas and electricity industries.
Ofgem Chief Executive, Alistair Buchanan, said: "Our latest proposals protect customers by requiring challenging cuts in operating expenditure."
He added: "Overall the proposals allow the companies to invest £5 billion in delivering a safe, modern gas network while ensuring that costs to customers are kept to a minimum".
© 2008 Adfero Ltd
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