OREANDA-NEWS. This morning the CMA announced their final determination in respect of the concurrent British Gas Trading (BGT) and Northern Powergrids (NPg) RIIO-ED1 price control appeals. As relevant distribution network licence holders, both Southern Electric Power Distribution (SEPD) and Scottish Hydro Electric Power Distribution (SHEPD) were named in the BGT appeal, along with the remaining eight slow-track DNOs. In its grounds of appeal BGT argued that networks would be permitted to recover unjustified levels of revenue during the RIIO-ED1 period of 2015-23. Across all five grounds the CMA has upheld Ofgem’s original determination, with the exception of the finding on the precise calibration of the Information Quality Incentive (IQI) reward. The Order issued today will reduce the combined average annual revenue of SHEPD and SEPD by 2m pounds.

Colin Nicol, Managing Director, Networks said:
“We welcome the conclusion of this appeal process and in particular the validation of the RIIO-ED1 price control process as representing value for money for customers. As we stated in December 2014 when accepting the price control settlement, we remain committed to delivering improved network performance and customer service over the price control period while also providing a fair return to investors. The conclusion of the appeal process will allow us to focus on doing just that.”