Ofgem will look to overhaul the RPI-minus system, which provides incentives to energy network operators to keep costs below the inflation rate, in favor of a regime which encourages investment, according to the Financial Times.
Alistair Buchanan, Ofgem’s CEO, was reported by the news source as saying that the latest review will not be critical of the achievements of the existing regime.
Mr Buchanan, as quoted by the Financial Times, said: The current RPI-minus X regime has delivered much greater efficiency from the network operators with better quality of service, improved reliability and lower costs to consumers. But we need to know that the regime can continue to promote innovation from the companies at the level that is required for the future.
