LONDON (Reuters) - Britain's electricity regulator has launched a review into some electricity and gas transmission projects planned by grid operator National Grid (LON:NG).
The regulator Ofgem, sets the amount of cash given to National Grid to maintain and improve the country's gas and electricity networks.
It said the review was needed to establish whether certain energy transmission projects were still needed and required funding.
"Following our consultation in November, Ofgem has today decided to launch a mid-period review into the 2013-2021 price controls which will be limited to National Grid Electricity Transmission and National Grid Gas Transmission," Ofgem said on Thursday.
Ofgem said since the review was targeted to a few projects it would not be re-opening the whole price control package.
"Ofgem's mid-period review announcement this morning should not concern investors, as it is focussed on reviewing 3 specific projects in Transmission," analysts at Bernsteil said in a research note.
"It is not a re-opening of the price control to change crucial aspects such as the allowed cost of capital," they added.
Gas and electricity network operator National Grid made 2.9 billion pounds in pretax profit in the financial year ending March 31 2015.
It is due to publish its next set of results on May 19.
Analysts polled by Reuters expect on average a 5.5 percent increase in full-year core earnings (EBITDA).
Ofgem said it would consult on any potential changes relating to the projects this summer with a decision to be made in late autumn. Any changes would take effect from April 1 2017, it said.