DNOs get green light for £22.2bn of investment over ED2

Ofgem has given upfront approval to £22.2 billion of investment by electricity distribution networks over the five-year RIIO ED2 price controls beginning in April next year. The regulator has reduced its assessment of the net benefits to consumers from £1.3 billion to £428 million as a result of changing market conditions, specifically the recent rise in interest rates, which affected both the cost of capital and totex allowances. Utility Week looks at how Ofgem has shifted its thinking and the impact on each company.