National Grid Transco Potential sale of network distribution businesses: Next steps

The document outlines the views we have received from respondents to our July 2003 consultation document and sets out Ofgems present position on the proposed sales in the light of these responses. The document outlines further work that has been undertaken by Ofgem to develop a Regulatory Impact Assessment (RIA) of the proposals. This work will ensure that when the Authority makes any future decision as to whether or not to approve the sale in principle, it has before it a sound and careful quantitative evaluation of the potential costs and benefits to customers and other affected parties. Ofgems current views are given on several of the issues that were raised in the July consultation. The document also sets out a way forward for further work to be undertaken to develop the commercial and regulatory framework that would be required to support any potential sale. If it were to approve any sale, the Authority would want to be confident that this framework would be able to deliver in practice, the customer benefits that may by then have been identified in theory.