The distribution network operator (DNO) will cut prices in 2015/16 by an average of 13.9 per cent in its areas, or around £13.50 off a typical household bill.
That saving has increased from the DNO’s original submission after Ofgem cut its allowed equity return from 6.7 per cent to 6.4 per cent, in line with a new methodology announced last week.
It was the only change to be imposed on the company, as the regulator said its business plan for 2015 to 2023 “clearly demonstrates good value for consumers”.
Western Power Distribution expects to spend around £7 billion across the 8-year RIIO-ED1 price control period, of which £3 billion will go on upgrading and maintaining the network.
The other five DNOs must submit revised business plans to the regulator on 17 March.