Open letter: Sale of gas distribution networks

Publication date
28th September 2016
Information types
Policy areas

Ofgem open letter to potential buyers of the majority stake in National Grid’s four gas distribution networks and part of SSE’s equity stake in SGN .

Ofgem regulates these businesses under our RIIO-GD1 price control (2013-2021) for gas distribution. The regulator is reminding bidders that firm decisions have not yet been made about RIIO-GD2, the price control period after 2021, and if they purchase these businesses at a premium over the Regulatory Asset Values, they will not be compensated for that premium.

Ofgem does not need to provide consent for the sale of shares in either transaction.