The CMA has accepted calls from British Gas Trading and Northern Power Grid to appeal against Ofgem’s RIIO-ED1 price control decision for the 8-year period from 1 April 2015 to 31 March 2023.
While British Gas claims the controls are too lenient, Northern Power Grid argues that the controls are too tough.
The authority said that both Ofgem and interested stakeholders are now invited to send representations or observations to the CMA no later than 5pm on 22 April 2015.
Utility Week understands that the CMA will have 6 months in which to investigate the networks appeals. But in the meantime Ofgem’s price controls will hold.
The regulator told Utility Week two weeks ago that the ED1 framework “will come into force on 1 April as planned and will be adjusted retrospectively according to CMA ruling”.
When asked, the Energy Networks Association declined to comment on the potential impact that a retroactive change to the new price controls could have on the networks, which could be extensive, saying there is “too much uncertainty” surrounding the matter.
The authority is already investigating the energy sector following concerns that the market is not competitive. The probe into Ofgem’s network regulation of five of the six networks companies will be separate to the wider sector investigation.