Ofgem gas exit regime decision quashed

Competition Commission decision (67 pages, PDF) quashing Ofgem's decision (22 pages, PDF) to apply a new gas transmission exit regime. The Competition Commission (acting as a tribunal) accepted some of E.ON's arguments that some of Ofgem's reasons for selecting the modification the National Grid proposal (in preference to the other candidate modifications) were wrongly reasoned and insufficiently transparent.

The Commission rejected E.ON's submission that the appeal had been brought only against Ofgem's decisions to approve the National Grid proposal and reject E.ON's preferred solution (of keeping the transitional regime), and instead held that the only decision that Ofgem had made was to approve the National Grid proposal: the rejection of other alternatives merely followed from that. Thus all alternatives are available for reconsideration by Ofgem.

If any party is dissatisfied by the Competition Commission's decision, the only appeal route appears to be to apply to the High Court (Administrative Division) for a judicial review.

For further information or advice please contact Franck Latrémolière.

Filed under Competition Commission, Gas, Ofgem.

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