Northern Powergrid Gets Green Light to Appeal Ofgem Charges
Northern Powergrid can now legally challenge Ofgem’s latest price control rules that cap how much it can charge customers.
Competition and Markets Authority Backs the Appeal
After Northern Powergrid’s request on 2 March 2023, the Competition and Markets Authority (CMA) has given the go-ahead for Northern Powergrid (Northeast) Plc and Northern Powergrid (Yorkshire) Plc to appeal the energy licence changes.
Fight Over Ofgem’s Network Investment Costs
The appeal targets modifications to Northern Powergrid’s electricity distribution licences. These changes stem from Ofgem’s RIIO-ED2 price control decision from November 2022, which sets how much the company can charge customers over the next five years.
Northern Powergrid disputes Ofgem’s calculation of costs for network maintenance and investment, especially regarding the impact of the shift to net zero on distribution companies.
CMA Panel to Decide Within Six Months
The CMA has six months to deliver a final verdict on the appeal. An independent panel of three CMA members will conduct the review.
