Energy Licence Modification Appeals 2021
The CMA is considering appeals by 9 energy companies against modifications made on 3 February 2021 to the electricity and gas transmission, and gas distribution, licences. The modifications were made by GEMA, Ofgem’s governing body, following Ofgem’s RIIO-2 price control decisions of 8 December 2020.
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Case type:
Administrative timetable
Published on 22 April 2021, as required by Rule 13 of the Energy Licence Modification Appeals: Competition and Markets Authority Rules (CMA70). Any revisions made to the timetable will be published on this website.
Date
Early August 2021
Main hearings
31 March 2021
3 March 2021
Notice of Extension
21 April 2021: Following representations from the parties, the CMA decided on 20 April 2021 to extend the deadline for the determination of the appeals by one month to 30 October 2021.
These returns are achieved through a charge on household energy bills and cutting them would have saved each UK household around £20, Ofgem said.
But after hearing further opinions from the sector, which said the decision would put investment in the green transition at risk, the regulator somewhat softened its stance, upping returns to 4.3%, which would slash energy bills by £10 on average.
Ofgem argues that investing in the UK’s energy networks carries very low risk and that lower returns will therefore not scare off investors.
The UK’s energy networks are heavily regulated and network returns are capped by Ofgem for multi-year periods.
CMA receives multiple appeals over Ofgem price control
Nine firms are seeking permission from the CMA to appeal against Ofgem’s price controls for energy companies.
From:
5 March 2021
The companies are appealing against changes to the electricity and gas transmission, and gas distribution, licences which set out how much energy companies can charge their customers. These changes are a result of the RIIO-2 price control decision issued in December 2020 by Ofgem.
The appeals largely focus on the allowed return on investment and the way Ofgem calculated the costs the companies would spend on maintaining and investing in their networks over the next 5 years.
Companies appeal against plans to slash household energy bills gazetteherald.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from gazetteherald.co.uk Daily Mail and Mail on Sunday newspapers.
Companies appeal against plans to slash household energy bills gazetteandherald.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from gazetteandherald.co.uk Daily Mail and Mail on Sunday newspapers.