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UK regulator approves £64M of electricity distribution funding requests

The U.K.'s Office of Gas and Electricity Markets, or Ofgem, approved £64 million of funding requests by electricity distribution network companies, while rejecting around £258 million of project proposals.

According to an Oct. 18 news release, three of the 12 funding requests under the RIIO-ED1 price control were approved.

These include a £45 million funding request for street works activities by Electricity North West Ltd., Northern Powergrid Holdings Co., Scottish Power Energy Networks Holdings Ltd., UK Power Networks Holdings Ltd. and Western Power Distribution PLC; a £16 million funding request by Scottish and Southern Energy Power Distribution Ltd. for diversions required to facilitate the electrification of the Great Western Railway line; and a £3 million funding request by Nothern Powergrid for physical site security upgrades.

The RIIO-ED1 price control runs from 2015 to 2023.

Ofgem is also consulting on a new set of price controls, or RIIO-2, which will take effect starting 2021 when the transmission and gas distribution price controls of RIIO-1 have expired.