Gas Distribution Price Control Review: Final Proposals

3 December 2007

Gas Distribution Price Control Review: Final Proposals

Ofgem’s final proposals for the Gas Distribution Price Control Review were published today. The review covers four companies which operate Great Britain’s eight gas distribution networks: National Grid Gas, Northern Gas Networks, Scotia Gas Networks and Wales and West Utilities.

This is the first 5 year review for the GDNs operating under separate ownership and builds on the 1 year review which was completed this time last year. Companies sought an outcome that provides an appropriate balance between customers and the need to maintain a safe, secure and reliable gas distribution network. The impact of these proposals on customers’ bills will be just £2 per year.

David Smith, Acting Chief Executive of ENA said: “We have been working closely with Ofgem throughout this price review and have built up a constructive relationship which I am sure will continue. The companies will now be assessing the proposals in detail over the next few weeks to see whether they are prepared to accept them. These companies have a unique role in delivering gas to homes and businesses across Great Britain.”

Note to editor

These proposals will determine what each gas distribution network companies (GDNs) can charge for use of their networks for the 5 year period beginning 1st April 2008. The GDNs will have until 7th January to decide whether they are prepared to accept the package. If any GDN does not find the package acceptable, they can reject the proposals and Ofgem will then make a referral to the Competition Commission.