By Jaime Llinares Taboada

 

The Office of Gas and Electricity Markets, or Ofgem, confirmed on Friday that it has cut the proposed cost of the Hinkley-Seabank grid link project by 60 million pounds ($73.3 million) to save consumers' money, as the expenditure planned by National Grid PLC was deemed too high.

The U.K.'s government regulator for the gas and electricity markets has decided that the total cost of the project will be reduced to GBP656 million, compared with the GBP716 million proposed by National Grid. However, this cut is lower than the GBP80 million reduction originally proposed by Ofgem in October.

The regulator said the cost will be spread over the next 45 years and that the rate of return that National Grid will get for the delivery of the project will be set in line with the next round of price controls.

National Grid shares at 0913 GMT were down 18 pence, or 2.0%, at 891 pence.

 

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

 

(END) Dow Jones Newswires

May 22, 2020 05:29 ET (09:29 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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