News & insights
Date: May 2026 | Client: Ofgem | Sector: Energy | Energy networks | Energy markets | Expertise: Regulation & competition
Sector specific methodology decision: Electricity Distribution price control (ED3)
The report examines an important question for the upcoming electricity distribution network price control: how the costs of long-lived network investment are recovered over time, and what this might mean for customers, companies and the wider energy transition.
Drawing on CEPA’s previous work on asset lives and depreciation, and informed by expert academic advice from Professor David Newbery and Dr Darryl Biggar, the report considers the regulatory dynamics and economic principles of depreciation, reviews Ofgem’s previous decisions, and discusses a range of policy options for ED3.
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