Mar 7, 2018
ALLENTOWN, Pa., March 7, 2018 /PRNewswire/ -- U.K. utility regulator Ofgem today issued its consultation document on the RIIO-2 framework for regulating energy network companies once the current price control periods end, which will not occur until April 1, 2023 for PPL Corporation's Western Power Distribution (WPD) business.
Ofgem is consulting on a wide range of issues, including cost of debt and equity methodologies, the length of the price control period, indexation methodologies, innovation, stakeholder engagement in the business planning process and performance incentive mechanisms.
"The RIIO-2 consultation document is in line with what we expected, and we look forward to engaging with Ofgem as we work to achieve the best possible outcomes for our customers and shareowners," said William H. Spence, chairman, president and Chief Executive Officer for PPL Corporation.
The RIIO-2 framework consultation looks to build on lessons learned from current price controls for gas, transmission and distribution companies while supporting low costs to consumers, improved customer service and reliability, and the U.K.'s continued shift to a low-carbon future.
Spence said he appreciates Ofgem's recognition of the many benefits the U.K.'s regulatory framework has already produced. This includes controlling costs to consumers, strengthening reliability, improving customer satisfaction significantly since privatization, spurring continued investment in energy networks and fostering greater innovation.
As WPD looks to build on this track record, Spence said PPL remains confident WPD is well positioned for future success under the RIIO framework as a top performing distribution network operator in the U.K.
Headquartered in Allentown, Pa., PPL Corporation (NYSE: PPL) is one of the largest companies in the U.S. utility sector. PPL's seven high-performing, award-winning utilities serve 10 million customers in the U.S. and United Kingdom. With more than 12,000 employees, the company is dedicated to providing exceptional customer service and reliability and delivering superior value for shareowners. To learn more, visit www.pplweb.com.
Note to Editors: Visit our media website at www.pplnewsroom.com for additional news and background about PPL Corporation.
For news media: Ryan Hill, 610-774-5997
For financial analysts: Andy Ludwig, 610-774-3389, or Lisa Pammer, 610-774-3316