The companies are appealing against changes to the electricity and gas transmission, and gas distribution, licences which set out how much energy companies can charge their customers. These changes are a result of the RIIO-2 price control decision issued in December 2020 by Ofgem.
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 5 years.
The Competition and Markets Authority (CMA) has 14 working days to decide whether to grant these firms permission to appeal. However, this timeline can be extended to 20 working days if the CMA needs to consider any submission from Ofgem regarding the applications for permission to appeal.
If permission is granted, the CMA will then have 6 months to come to a final view on the appeals.
The 9 firms seeking permission to appeal this price control are:
- Cadent Gas Limited
- National Grid Electricity Transmission plc
- National Grid Gas plc
- Northern Gas Networks Limited
- Southern Gas Networks plc and Scotland Gas Networks plc (joint application)
- Scottish Hydro Electric Transmission plc
- SP Transmission plc
- Wales & West Utilities Limited
For more information on the process of such appeals, please see the CMA70 and CMA71 guidance.
All information on this case is available on the Energy Licence Modification Appeals page.