Application of merger tax to gas distribution

Ofgem paper (2 pages, PDF) setting out its position on mergers of gas distribution network operators. The note confirms that a policy similar to the electricity distribution merger tax would apply. Ofgem does not state the amount of the merger tax for gas, or whether it would reflect the efficiency savings expected to be achieved from the merger (over and above what will get passed to customers through future price controls) or would be derived by reference to the detriment to Ofgem's ability to use comparisons between independently owned operators.

For further information or advice please contact Franck Latrémolière.

Filed under Gas, Ofgem.

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