CMA partially upholds appeal on energy distribution licence changes

Summary:

The Competition and Markets Authority (CMA) has ordered the Gas and Electricity Markets Authority (GEMA) to reconsider a part of its analysis and redetermine the outcome of its decision to modify Distribution Network Operators' (DNO) licences. The decision was made in response to an appeal brought by Northern Powergrid, which had argued that GEMA's proposed licence modifications were incorrect. The CMA has upheld Northern Powergrid's appeal on the first ground, citing GEMA's alleged misallocation of allowances between cost categories, which resulted in Northern Powergrid's Northeast and Yorkshire businesses being underfunded. GEMA will now be required to reconsider its analysis and determine the outcome in relation to any changes to Northern Powergrid's DNO licences.