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CMA grants permission for electricity distribution network price controls appeals

The CMA has granted permission to (i) Northern Powergrid (Northeast) Limited and Northern Powergrid (Yorkshire) plc; and (ii) British Gas Trading Limited (BGT) to appeal against Ofgem’s RIIO-ED1 price control decision for electricity distribution companies.

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The Competition and Markets Authority (CMA) announced it had received the appeals earlier this month and will now appoint a group of panel members to determine them.

The appeals are made under section 11C of the Electricity Act 1989 and relate to price controls made for the 8-year period from 1 April 2015 to 31 March 2023. BGT is not an electricity distribution network operator; it is seeking to appeal as a party materially affected by the decision. The details of the price controls were announced in November 2014.

Ofgem may now make representations or observations to the CMA about the reasons for its decision, the subject of appeal and/or any grounds on which the appeal has been brought against that decision in accordance with Rule 9 of the Competition Commission Energy Licence Modification Appeals Rules as adopted by the CMA.

Interested third parties may also make representations or observations to the CMA about the grounds on which the appeal has been brought in accordance with Rule 10 of the Competition Commission Energy Licence Modification Appeals Rules as adopted by the CMA. Interested third parties should refer to the CMA’s note to third parties before making submissions.

All submissions should reach the Inquiry Manager (npgandbgt.ofgem@cma.gsi.gov.uk) by no later than 5pm on 22 April 2015. The CMA will not consider late submissions.

More information is available on the Northern Powergrid and British Gas Trading case pages and there is also guidance available for further details on the process for such appeals.

The appeals are separate from the CMA’s ongoing investigation into the retail energy market.

Published 30 March 2015