EDF Energy has decided to accept Ofgem's final proposals for the fifth electricity distribution price control review (DPCR5) for the five years from April 1, 2010, in respect of its electricity distribution business which serves London, the East of England and the South East.
EDF Energy said that it has viewed Ofgem's final proposals as a package. The company is developing plans to improve operational efficiency and effectiveness. These plans will also help offset the low headline allowed weighted average cost of capital. As a result, EDF Energy believes that it will earn a return overall on its electricity distribution assets, which meets its shareholders' expectations.
EDF Energy is also convinced that the weighted average cost of capital in the reviews to come will have to be increased in order to deliver sustainable investment in smart and low carbon networks.
EDF Energy is also looking forward to developing the opportunities provided by Ofgem's GBP500m Low Carbon Networks Fund. The company is focused on delivering solutions in its networks businesses to help achieve the decarbonisation of the electricity industry.
Vincent Rivaz, chief executive of EDF Energy, said: "Our comprehensive and detailed analysis of Ofgem's final proposals has been carried out with a clear vision for the future of this business to meet the needs of all its stakeholders. In a nutshell, this package will be challenging but this business is ready to rise to this opportunity.
"EDF Energy has delivered GBP2.1billion of capital expenditure since 2005. In doing so, we have already led the way in demonstrating the need for increased investment, a path which the other operators are now following for the DPCR5 period. Now we also intend to lead the way with our programme of further efficiency improvements and even higher levels of customer service."
EDF Energy is also convinced that the weighted average cost of capital in the reviews to come will have to be increased in order to deliver sustainable investment in smart and low carbon networks.
EDF Energy is also looking forward to developing the opportunities provided by Ofgem's GBP500m Low Carbon Networks Fund. The company is focused on delivering solutions in its networks businesses to help achieve the decarbonisation of the electricity industry.
Vincent Rivaz, chief executive of EDF Energy, said: "Our comprehensive and detailed analysis of Ofgem's final proposals has been carried out with a clear vision for the future of this business to meet the needs of all its stakeholders. In a nutshell, this package will be challenging but this business is ready to rise to this opportunity.
"EDF Energy has delivered GBP2.1billion of capital expenditure since 2005. In doing so, we have already led the way in demonstrating the need for increased investment, a path which the other operators are now following for the DPCR5 period. Now we also intend to lead the way with our programme of further efficiency improvements and even higher levels of customer service."
Source: Energy Business Review
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