Northern Powergrid and British Gas have sought permission from the Competition and Markets Authority (CMA) to appeal against Ofgem’s price controls for electricity distribution companies.
Through the so-called “RIIO-ED1” price control process, energy regulator Ofgem sets the outputs that electricity distribution companies need to deliver for their consumers, and the revenues that they will be allowed to collect over the eight-year period from 1 April 2015 – 31 March 2023. The details of these price controls were announced in November 2014.
The applications for permission to appeal were made under Section 11C of Electricity Act 1989. The CMA must now decide whether to grant permission, and if so it then has six months to determine the appeals. These appeals are separate from the CMA’s ongoing investigation of the energy markets.