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Gas distribution price controls from 2008

This page is for information and links relating to Ofgem's review of the transmission price controls for the main (ex-Transco) gas distribution networks in England, Wales and Scotland.

Documents and events are listed in reverse chronological order through the review process.

22 February 2008: Formal consultation on licence conditions

3 December 2007: Ofgem's final proposals

24 September 2007: Ofgem's update

• No rolling incentive scheme for operating expenditure.

• Same cost of capital and productivity assumptions as in initial proposals, with new evidence on productivity trends provided by Reckon LLP.

29 May 2007: Ofgem's initial proposals

• The decision on whether to implement a rolling incentive scheme for operating expenditure is postponed to September 2007.

• The system of information quality incentives and variable incentive rates for capital expenditure over- and under-spends is confirmed.

• Some cost trend assumptions are proposed, but further work is promised on input prices.

• The assumed cost of capital is based on 62.5 per cent gearing, a 3.55 per cent cost of debt and a 7 per cent cost of equity (all relative to RPI).

26 March 2007: Ofgem's fourth consultation

• The November 2006 view against a rolling incentive scheme for operating expenditure is questioned, and a decision postponed to May 2007.

27 November 2006: Ofgem's third consultation

• Ofgem expresses a favourable view on information quality incentives (previously known as sliding-scale or menu schemes) with variable incentive rates for capital expenditure, and an unfavourable view of rolling incentive schemes for operating expenditure.

19 July 2006: Ofgem's second consultation

1 December 2005: Ofgem's first consultation

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Last changed by Franck at 5:00 PM on Saturday 23 February 2008.