Open letter: Sale of gas distribution networks
Correspondence and other
Publication date
Industry sector
- Distribution Network
- Transmission Network
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.