The watchdog agreed that Western Power Distribution (WPD) was exposed to adequate competition for it to be freed from regulated margins in 12 of its 36 connections business segments. But the company failed in applications to have caps lifted in 16 other segments. Distribution network operators (DNOs) are obliged to foster competition in their connections operations in each of nine business segments.
WPD today became the fourth distribution network operator to receive Ofgem determinations on its connections business following UK Power Networks, Electriciy North West and Northern Powergrid.
The overall tally across the four DNOs – with 10 networks between them – is 23 successful applications to have caps lifted out of 90 business segments and 34 failed. No applications had been received for the remaining segments.