Energy licence modification appeals 2021

The CMA has published its final determination and order in the appeals by 9 energy companies against modifications made on 3 February 2021 to the electricity and gas transmission, and gas distribution, licences.

From:
Competition and Markets Authority
Published
5 March 2021
Last updated
23 June 2023 — See all updates
Case type:
Regulatory references and appeals
Case state:
Open
Market sector:
Energy
Opened:
5 March 2021

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 Action
1 November 2021 Publication of non-sensitive version of final determination and order
30 October 2021 Statutory deadline (with extension) for final determination
28 October 2021 Issue of final determinations to parties and interveners, and publication of summary
Early September Parties’ and interveners’ representations on provisional determination
Week commencing 9 August 2021 Issue of provisional determinations to parties and interveners, and publication of summary
Late June/early July 2021 Main hearings
Mid-late May 2021 Clarification hearings
23 April 2021 Deadline for GEMA’s response and for any applications for permission to intervene
31 March 2021 Permission to appeal granted
17 March 2021 GEMA lodged submissions on whether permissions to appeal should be granted
3 March 2021 Permission to appeal sought by 9 parties

CMA publishes final costs determination and order

23 June 2023: The CMA has announced its final determination on costs and costs order in relation to the Energy Licence Modification Appeals 2021:

The final determination on costs and the costs order were made on the basis of the parties to the appeal determined in October 2021. Since then, following the sale of the majority shareholding out of National Grid Group in January 2023, National Grid Gas plc has now been renamed National Gas Transmission plc.

CMA publishes final determination and order

1 November 2021: The CMA has published a non-sensitive version of its final determination (FD) and order in the Energy Licence Modification Appeals 2021 (issued on 28 October 2021). A second order was issued on 29 October 2021 under Rule 22 with corrections. The FD has been published in separate volumes for practical reasons – information in volume 1 relates to all volumes of the FD and Order:

CMA publishes summary of its final determination

28 October 2021: The CMA has published a summary of its final determination (FD) in the Energy Licence Modification Appeals 2021. The full FD will be issued to the parties and interveners. A non-sensitive version of the full FD will be published as soon as reasonably practicable.

Summary of provisional determination

11 August 2021: The CMA has published a summary of its provisional determination (PD) in the Energy Licence Modification Appeals 2021. The full PD will be issued to the parties and interveners.

Appellant withdraws sub-ground of appeal

26 May 2021: On 17 May 2021, the CMA granted permission to Northern Gas Networks Limited to withdraw sub-grounds 4A(i) and 4B of Ground 4 of its appeal.

GEMA Response to appellants’ submissions on CMA PR19 final determination

17 May 2021: On 10 May 2021, the CMA received GEMA’s Response to the appellants’ submissions on the CMA’s Final Report on Ofwat Price Determinations.

Appellants’ Replies to GEMA’s Response

17 May 2021: On 10 May 2021, the appellants replied to GEMA’s Response to the appellants’ Notices of Appeal.

Interveners

17 May 2021: On 23 April 2021, the CMA received applications for permission to intervene from five entities. On 6 May 2021, the CMA issued its decisions on each application. The CMA allowed the following entities to intervene in the grounds concerning cost of equity and the outperformance wedge: British Gas Trading Limited and Citizens Advice. The other applications were rejected.

Appellant joined to an additional ground

17 May 2021: On 6 May 2021, the CMA directed that Wales & West Utilities Limited’s representations regarding the outperformance wedge are joined with the appeals against the outperformance wedge.

Submissions from appellants on CMA PR19 final determination

5 May 2021: On 23 April 2021, the CMA received submissions from the appellants in relation to the CMA’s Final Report on Ofwat Price Determinations, published on 9 April 2021.

Response to the Notices of Appeal

5 May 2021: On 23 April 2021, GEMA responded to the appellants’ Notices of Appeal.

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.

Appeal group appointed

31 March 2021: The CMA has appointed a group of 3 panel members to determine the appeal.

Kirstin Baker (Chair), Susan Hankey, and David Thomas

CMA decision on permission

31 March 2021: The CMA has granted permission to appeal on all grounds pleaded by the following appellants:

  • Cadent Gas Limited
  • National Grid Electricity Transmission plc
  • National Grid Gas plc
  • Northern Gas Networks Limited
  • Southern Gas Networks plc and Scotland Gas Networks plc (joint application)
  • Scottish Hydro Electric Transmission plc
  • SP Transmission plc
  • Wales & West Utilities Limited

Permission is granted subject to the conditions that the following common grounds of appeal are joined across appellants which pleaded the ground:

  • Cost of equity
  • Outperformance wedge
  • Ongoing efficiency
  • Licence modification process

In addition, the appeals from National Grid Electricity Transmission plc and National Grid Gas plc will be joined, as requested.

Notices of appeal

3 March 2021: Nine licence holders sought permission to appeal GEMA’s decision of 3 February 2021 on the proposed modifications to certain electricity and gas transmission, and gas distribution, licences. These licence modifications are based on GEMA’s RIIO-2 price control decisions of 8 December 2020, which set out how much energy companies can charge their customers.

Any queries or submissions relating to this matter should be sent to:

[email protected]

Updates to this page

Published 5 March 2021
Last updated 23 June 2023 + show all updates

  1. Final costs determination and order published.

  2. Final determination and order published.

  3. Summary of final determination published.

  4. Summary of provisional determination published.

  5. On 17 May 2021, the CMA granted permission to Northern Gas Networks Limited to withdraw sub-grounds 4A(i) and 4B of Ground 4 of its appeal.

  6. Gas and Electricity Markets Authority (GEMA) responses and appellants’ submissions published.

  7. Submissions from appellants on CMA PR19 final determination and responses to the Notices of Appeal published.

  8. Notice of extension published.

  9. Appeal group appointed and CMA decision on permission published.

  10. Timetable updated.

  11. First published.

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