Performance Report 2004
Ambition 1: Customers
At the end of 2004, the final proposals under the Distribution Price Control Review ('DPCR') was agreed with our regulator Ofgem. This was an important process for EDF Energy as, amongst other things, it determines how much capital we can invest in our network, as well as the amount we can charge suppliers for electricity distribution.
The last three reviews had been marked by considerable cost-cutting, but this time the industry got investment firmly back on the agenda.
Having accepted the latest Review, EDF Energy will be investing approximately £400 million in its networks during 2005, compared to the £300 million we committed to invest last year.
Most of our network is over 40 years old and, while there is nothing substantially wrong with it, investment in the infrastructure is essential in the medium- to long-term to maintain reliability.
We submitted a plan to the industry regulator, Ofgem, that carefully outlined the areas that need repair or replacement in order that they be upgraded now before the cost of doing so becomes too great and reliability begins to deteriorate. Over 90% of these investment plans were approved by Ofgem for inclusion in the capital espenditure allowances.