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<p>Monopoly energy network companies, which transport energy to homes and businesses,
are regulated by the independent energy regulator, Ofgem, to ensure that they adequately
maintain a safe and secure network whilst investing for the future and ensuring a
fair price for consumers. In order to do this, Ofgem uses price controls to determine
the revenues network companies may recover, the investment they may make and the performance
standards they must deliver.</p><p> </p><p>The regulatory price control is by law
a matter for Ofgem who ensure, through the regulatory framework, that energy networks
are able to deliver our net zero target, and Government will continue to engage with
Ofgem on this. Ofgem has also established a Net Zero Advisory Group, with members
from across government and the public sector, to advise on how price controls can
best enable decarbonisation, including by bringing forward appropriate investment.</p><p>
</p><p>Since the start of the current electricity distribution price control (RIIO-ED1)
in 2015, around £270m of innovation funding has been allocated to Electricity Distribution
Network Operators, which is already supporting the move to net zero. Ofgem has also
announced the introduction of a new Strategic Innovation Fund for the upcoming energy
network price controls (RIIO-2). This fund, alongside funding to individual companies,
will provide £450m for research and development into crucial green energy projects,
with the potential to fund more if required.</p>
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