In the interest of a greener future Ofgem has launched a review of the costs associated to Britain’s 255,000 miles of low voltage electricity networks.

In order for new form’s of renewable energy including, wind turbines and solar panels to connect to the grid it is estimated that around £200 billion needs to be spent on upgrading the UK’s electricity infrastructure.

The price control review, which is known as RIIO (setting Revenue and Incentives to deliver Innovation and Outputs) calls on distribution companies to look at efficient, less costly ways of meeting this challenge. The new price controls will run from 2015 until at least 2023.

Rachel Fletcher, in charge of distribution at Ofgem said: “The needs of consumers are changing, both in terms of how they use electricity and their role in its production. Conventional network investment may no longer always be the most efficient or flexible approach. “As they develop their business plans for the next period, we expect the distribution companies to explore the role smarter solutions could play in supporting this change.” (www.energylivenews.com, 08/02/2012)