Nine energy networks lodge appeals on costs and returns

Nine energy networks last week sought permission to appeal to the Competition and Markets Authority (CMA) against modifications made on 3 February 2021 to their licences which set out how much the firms can charge their customers. The modifications were made by GEMA, Ofgem’s governing body, following Ofgem’s RIIO-2 price control decisions of 8 December 2020.

The CMA reported the appeals largely focus on the allowed return on investment and the way Ofgem calculated the costs the companies would spend on maintaining and investing in their networks over the next five years.

The CMA will decide whether to grant the appeals by 31 March at the latest. If permission is granted, the CMA will then have six months to come to a final view on the appeals.

The appellants were:

Cadent Gas,

National Grid Electricity Transmission,

National Grid Gas,

Northern Gas Networks,

Scottish Hydro Electric Transmission,

Southern Gas Networks and Scotland Gas Networks (joint application),

SP Transmission and

Wales and West Utilities.