In a statement SGN, 50 per cent owned by SSE, said that subject to agreement on detailed implementation, the proposals “should allow the maintenance of safe and reliable gas networks and fair return to be doing so”.
The other Gas Distribution Networks (GDNs) are keeping their powder dry at this juncture. Stephen Parker, regulation director Northern Gas Networks, said: “We are pleased to be recognized as the most efficient gas networks operator, however we are still reviewing the detail of the outcome .”
Wales and West Utilities (WWU) said it was still considering its position.
Overall Ofgem trimmed £3.3 billion off the allowed expenditure figure of £17.7 billion proposed by the GDNs in their business cases. National Grid’s GDNs and WWU face cuts of 20 per cent.