Ofgem proposes cutting National Grid budget by 185.4 mln pounds

Aug 18 (Reuters) - Britain's energy regulator Ofgem has proposed scrapping some 185.4 million pounds worth of power and gas projects due to be undertaken by National Grid (LSE: NG.L - news) , it said on Thursday.

Ofgem, which sets the amount of cash which is granted to National Grid to improve and maintain the country's electricity and gas distribution networks, launched a review into some transmission projects in May.

Its biggest proposed cutback to National Grid's budget relates to a 168.8 million-pound Avonmouth gas pipelines project, which it says are no longer needed.

It also proposes reducing Grid's allowance by 38.1 million pounds for electricity transmission works.

However, Ofgem is allocating an extra 21.5 million pounds to help National Grid manage additional supply and balancing services on Britain's high-voltage network as the country moves to a low-carbon economy, it said.

Ofgem said it was consulting on its proposals and would take a final decision this autumn. (Reporting by Oleg Vukmanovic in Milan; Editing by Greg Mahlich)