We are seeking views on our minded-to position in respect of National Grid Gas plc’s (NGGD) proposed relevant adjustment in relation to specified streetworks costs for the RIIO-GD1 price control period 2013-2021. The proposed adjustment was submitted under NGGD’s Gas Transporter Licence, Special Condition 3F - Arrangements for the recovery of uncertain costs.
The RIIO-GD1 price control for 2013-2021 allows the gas distribution network companies (GDNs) to apply to the Authority, by means of a reopener mechanism, to adjust their allowed expenditure to accommodate additional costs associated with specified streetworks costs.
The GDNs may propose relevant adjustments during two defined application windows, May 2015 and May 2018, where the amount exceeds or is likely to exceed one per cent of the relevant GDNs materiality threshold.