UK energy regulator Ofgem on Monday announced changes to its network rules to attract fresh investment in the country's power grid, which requires £32bn over the next decade to meet low-carbon commitments.
The regulator, which has been under pressure from the Parliament to create a new framework for the energy industry, has proposed extending price controls for energy networks by three more years - from the current five years. This will allow for longer return periods and greater security for investors.
Ofgem, which noted that the engineering of UK's networks has not changed for half a century, is required to stimulate investment in a "smart grid", which would integrate intermittent wind and wave energy into the country's electric supply.
The plan also involves the linking onshore and offshore wind farms located in remote parts of Britain using high-voltage transmission lines.
Ofgem's other proposals to boost investment include rewarding well-performing companies with fast-track price controls, giving higher returns; and penalising poorly performing companies with more intrusive regulation.
