Ofgem welcomes CMA’s decision on appeals against the RIIO-ED1 price control
Press release
Publication date
Industry sector
Distribution Network
Ofgem today welcomes the Competition and Markets Authority’s decision on appeals made by two companies against specific elements of the 2015-2023 electricity distribution price control (RIIO ED1).
Ofgem’s price control will deliver £24.6 billion of investment in total over the next eight years and will result in an annual average saving of £10 for consumers. The appeal relates to the price controls for 5 of the companies responsible for £17 billion of this investment.
The CMA found partially in favour of British Gas (BG) on one ground, but dismissed the other 5 grounds in Ofgem’s favour. For Northern Powergrid (NPg), CMA found in favour on one ground, but dismissed the other two.
Ofgem will examine the CMA’s decision in more detail, looking to learn lessons and improve its processes for future price controls.
Notes to editors
- The CMA’s findings come into effect after 14 days and we will publish new licence conditions to reflect this decision. The direct effect of the CMA’s decision on the NPg appeal is to increase its expenditure allowance by £31 million (equivalent to £11 million additional revenue over 2015-23). As a result of the BG appeal the five distribution companies combined will have to reduce the amount they recover by £105 million out of a total of £17 billion over RIIO ED1.
- As a result of Ofgem’s regulation, Britain’s energy network is 17 per cent cheaper in real terms than 25 years ago, £80 billion of investment has been secured and reliability has improved by 30 per cent. For more information on the electricity distribution price control see our infographic, for more general information on energy network costs please see our video
About Ofgem
Ofgem is the independent energy regulator for Great Britain. Its priority is to make a positive difference for consumers by promoting competition in the energy markets and regulating networks.
For facts, figures and information about Ofgem’s work, see Energy facts and figures.
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