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01/12/11: Electricity North West leads way in competition ruling

Electricity North West is the first network operator to have its price regulation lifted by Ofgem in certain areas of its connections business – opening the way for other DNOs to follow.

The North West’s network operator has been successful in its bid to open up some of its connections to full competition following a competition test submission to Ofgem earlier this year.

Electricity North West has had its price regulation lifted in three areas of connections where the regulator considers that there is evidence of competition and buyer power: 

  • metered demand connections extra high voltage (EHV) work and above;
  • metered distributed generation (DG) High Voltage (HV) and EHV work; and
  • unmetered connections private finance initiatives (PFI).

Paul Bircham, Regulation Director for Electricity North West, said: “I’m delighted that Ofgem has accepted our application to open up sections of our connections work to full competition.

“Through responses to its consultation, Ofgem has recognised that we are a leading DNO in facilitating competition, and we are pleased that our efforts have been acknowledged.

“We welcome competition to drive up standards and help customers get the best deal, and we will continue to lead the industry in promoting competition in connections.”

In making its decision to allow Electricity North West to become the first DNO to have its price regulation lifted in this way, Ofgem also recognised the company’s work to extend contestability in a number of other areas including live jointing, point of connection self-determination and partially-funded connections.

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