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Ofgem efforts to exert price controls challenged by energy supplier - 04/11/2009

Efforts from energy industry regulator Ofgem to pursue cheap energy rates by exerting price controls have been challenged by EDF.

The regulator is set to announce energy distribution price caps for the next five years in order to limit how much suppliers can charge for the delivery of electricity, but EDF has argued that the move will hinder its ability to invest in smart grids and roll out smart meters.

Smart grids are viewed as a necessary investment to upgrade the UK's energy infrastructure in preparation for increased wind farm development and more efficient practices.

Vincent de Rivaz, chief executive of EDF's UK business, told the paper: "The distribution price review is my single biggest focus. We cannot have smart grids on an underfunded network."

He added that energy firms should be responsible for installing smart meters in UK homes, which the government currently plans to announce details for within the next few weeks.

EDF is scheduled to lead nuclear redevelopment in the UK over the next few years.

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