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Energy Distribution

Volume 447: debated on Monday 12 June 2006

To ask the Secretary of State for Trade and Industry what discussions he (a) has had and (b) plans to have with energy distribution network operators on levels of investment in such networks. (74804)

I recently met the Energy Networks Association and a number of network operators were present. Discussion covered a range of topics, including the issue of investment in energy networks. Levels of investment are agreed between the Regulator (Ofgem) and the network businesses. These are called price controls and last for a period of five years. The most recent price control commenced in April 2004. Ofgem has to allow the networks sufficient revenue to ensure that they can meet licence conditions which include the requirement to run safe and efficient networks.