Electricity firms row over costs
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The electricity industry is heading for another row over the introduction of domestic competition in 1998, and about who will pay the cost of the computers and other systems needed to allow orderly trading to take place, writes Mary Fagan.
The regional electricity companies believe the total bill could be pounds 200m to pounds 300m instead of the pounds 50m suggested by the regulator, Offer, and are concerned that shareholders should not bear the brunt of the costs.
East Midlands Electricity has complained to Offer, calling for clarification of the situation and how the costs will be recouped. It is thought that the regional companies agreed at a meeting on Monday to pay pounds 50m, clawing it back from customers only once the benefits of competition have been established. However, East Midlands argues that the sum will cover only the costs of changes in the electricity trading pool and fails to recognise the impact on the individual companies.
The company pointed out yesterday that Ofgas, the gas watchdog, put the cost of introducing competition in gas at pounds 180m and that this is a much simpler task.
A senior executive of one company also warned that there could be chaos in 1998 unless Professor Stephen Littlechild, director general of Offer, assumes direct responsibility for driving the project. "In gas the Government and the regulator took the reins. In electricity no one `owns' the project - no one is willing to take control," he said.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments