Decision on changes to WPD’s licences for Rail Electrification Costs

Publication date
19th July 2018
Information types
Policy areas

Following the UK Government’s cancellation of a number of rail electrification schemes within Western Power Distribution’s (WPD) network areas in July 2017, WPD confirmed their intention to voluntarily return £77m of unspent capital costs to customers.

In returning this money to their customers, WPD requested that it be covered for any further policy changes that require increased spend on diversions due to rail electrification. This would take the form of an uncertainty mechanism similar to that which applies to slow-tracked DNOs, and would require changes to WPD’s four licences, as well as the corresponding Price Control Financial Handbook.

Having considered the responses to our statutory consultation, we have decided that the uncertainty mechanism for WPD will take the form of a reopener for Rail Electrification Costs in 2022 once the potential for future related costs is likely known.