Introduction
1. In 2003, we took evidence on two issues concerning
the national electricity network: how to sustain and, if appropriate,
increase the performance of that network, and the lessons to be
learnt from the power cuts following the strong winds in October
2002. We went on to produce a Report on The Resilience of the
National Electricity Network, which focussed on investment
in the infrastructure and operational expenditure on maintenance
and repairs. This Report noted that the industry regulator, Ofgem,
was then starting work on the price controls to be imposed on
the 14 distribution network companies which would determine the
maximum amount those companies could spend on maintaining and
replacing the infrastructure. Ofgem's review is now complete.
2. This Report brings together the related issues
of future expenditure on the distribution networks and whether
and how the network companies are prepared for dealing with disruption
to the electricity supply when events beyond their control, such
as severe storms, occur. Part 1 of the Report deals with lessons
learned from the October 2002 storms; Part 2 focusses on future
investment in the distribution networks.
3. We are grateful to all those who submitted written
evidence to both inquiries, and especially to those witnesses
from whom we heard oral evidence: the Electricity Association
(EA), the Energy Networks Association, EDF Energy, energywatch,
Ofgem and the DTI.
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