By Ian Walker

National Grid PLC (NG.LN) said Friday that the RIIO-T2 price-control proposals from energy regulator Ofgem are a step in the right direction, but that it still has concerns.

The company said the proposals as currently set out won't bring the changes consumers need.

"Our vision is of an energy future where bills are kept low for consumers, energy is decarbonized, innovation is encouraged and which together support the growth and prosperity of the UK economy," National Grid said.

Late last year Ofgem said that it intends to set baseline returns to shareholders at 4% for the next regulatory period from 2021, about half the previous limit. This is at the bottom end of previous guidance in March 2018, when the regulator said it would propose a range of between 4% and 6%.

Ofgem said previously that it expects the change, along with adjustments to borrowing costs, to save consumers 6.5 billion pounds ($8.6 billion) overall. Ofgem has launched a consultation on the proposals to close in the second quarter of 2019.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

March 15, 2019 03:34 ET (07:34 GMT)

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