Ofgem have opened a consultation as it proposes making changes to the electricity distribution licenses so allow it to recover funding from SP Energy Networks (SPEN) if it fails to deliver projects related to power outages.
The proposal relates to a £63.5 million in addition funding approved for seven Electricity System Restoration (ESR) initiatives under the RIIO-ED2 price control.
Ofgem says that the changes are intended to protect consumers from paying for projects that are not completed, or that fail to meet required standards.
Projects include installation of backup generators, upgrading batteries, improving telecommunications and providing additional control engineers and specialist staff to support delivery of resilience upgrades.
SPEN have previously raised concerns that a rigid pass or fail approach to assessing delivery could create unintended problems as the complexity of projects mean that a milestone-based assessment could be more appropriate.
The deadline for responses is the 30th October. If it proceeds with the license changes, they will take effect in around 56 days after the decision is published.
