Gas distribution price control review: fourth consultation

Ofgem consultation (92 pages, PDF) with appendices (54 pages, PDF) on gas distribution price controls from 2008.

Responses by Wednesday 25 April 2007. Initial proposals and a first draft of the licence modifications are due in May 2007.

Ofgem proposes to implement an "information quality incentive" scheme (formerly known as "sliding scale" and now called "IQI") for capital expenditure projections. This would be similar to the scheme it used in the 2004 electricity distribution price control review, but with some additional complications. Ofgem is also having second thoughts about its November 2006 "initial view" that "there does not appear to be a strong case for implementing the opex rolling incentive" and defers the issue to the May 2007 initial proposals.

See also Ofgem's blind faith in Wikipedia | viewpoint: Franck.

Update, 23 April 2007: now linking to amended document correcting an error in Table 3.2. The old document has been deleted from the Ofgem website.

For further information or advice please contact Franck Latrémolière.

Filed under Gas, Ofgem, Price controls.

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