News story

CMA accepts varied Rough undertakings

The CMA has accepted varied undertakings from Centrica and Centrica Storage Limited (CSL) relating to the Rough gas storage facility.

Gas hob

This follows the Competition and Markets Authority’s (CMA) final decision that they should be varied, which was published in April.

Rough is a gas field in the North Sea used to store gas in the summer and deliver it in winter when the gas is needed to help meet high demand. It is an important part of the UK’s gas storage infrastructure and capacity.

The previous undertakings included an obligation for Centrica Storage Limited (CSL), the operator of Rough, to offer for sale a specific amount of capacity before the start of each storage year and limit the amount which can be supplied to its parent company Centrica.

In its final decision the group of independent CMA panel members carrying out the review found that as Rough ages its performance may become increasingly unpredictable, so that CSL cannot meet the previous capacity obligations.

The varied undertakings introduce an adjustment mechanism which would allow Ofgem, as energy regulator, to vary the capacity obligations - if CSL is able to demonstrate that there is an issue which will have a substantial impact on Rough’s capacity.

Further details can be found on the case page.

Published 26 May 2016