The UK Competition and Markets Authority (CMA) today published its final determinations in respect of two separate appeals against Ofgem’s decision to modify the licences of the ‘slow-tracked’ GB electricity distribution network operators following the conclusion of the RIIO-ED1 price control. RIIO-ED1 covers an eight year period to run from 2015/16 to 2022/23. In February 2014, Ofgem finalised the price control for one company early, known as ‘fast-tracking’.
Northern Powergrid appealed against the modification of its two licences on three separate grounds. The CMA upheld one ground, in relation to Ofgem’s adjustments to reflect potential savings available from the introduction of smart grids and other technological innovations. The CMA dismissed the other two grounds of appeal, in respect of real price effects and regional labour adjustments.
British Gas Trading (BGT) appealed against the modification of all ten ‘slow track’ licences on five grounds. The CMA dismissed four of the five grounds, but upheld in part BGT’s appeal against the adjustment Ofgem made to the calibration of its Information Quality Incentive.
Further details on key facts of the determination can be found in Frontier’s client briefing note.
Frontier (Europe) advised Northern Powergrid throughout the CMA’s investigation.
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