National Grid will not fight Ofgem's RIIO price controls at the Competition Commission, it announced today.

The network company said the package, which totals £38.2 billion over eight years, offered the opportunity to earn appropriate returns while delivering essential infrastructure investment. It had previously protested against deep cuts by the regulator to its initial business plan.

Chief executive Steve Holliday said: “I am pleased to confirm agreement of the RIIO price controls for our UK businesses. This is the culmination of a new process that started over three years ago, and represents another opportunity for National Grid to deliver further shareholder value.

“These arrangements give our UK businesses their longest ever period of regulatory clarity. This enables us to focus on driving efficiency across our operations while building the infrastructure that the country needs and at the same time realise the benefits of excellent performance for both customers and investors.”