Competition and Markets Authority publish provisional determination of Cadent's appeal


The Competition and Market's Authority (CMA) has today announced its provisional determination of Cadent's appeal of Ofgem's final determination of our 2021-2026 Business Plan.

Dr Tony Ballance, Chief Strategy & Regulatory Officer at Cadent explained:

“We have worked hard with Ofgem and the Competition and Markets Authority (CMA) since March this year, to seek the right settlement that is in the best short and long-term interests of our customers. 

"Our appeal sought to address specific errors, that we identified, did not allow us to achieve the best outcomes for our customers.   These related to three specific aspects of GEMA’s cost assessment and to the cost of equity and the proposed introduction of the out performance wedge.

“We will now take some time to review the details of these provisional determination. 

“We will continue to work with Ofgem and the CMA, to ensure the final settlement will enable us to provide the best option for our customers and ensure Cadent can continue to deliver a safe and reliable energy network now and lead the development of a net zero future.”

Cadent’s Business Plan
Cadent is the UK’s largest gas distribution network. We deliver energy to over 11 million homes, around half of all homes and businesses that use gas in the UK.

Our five year business plan was developed after listening carefully to the voice of our customers and stakeholders about their expectations of us and what services they are willing to pay for. 
Our plan, which was developed with the intention of setting the new efficiency benchmark for our industry, was subject to robust and critical challenge by our independent customer engagement group.  As a result, it was the only one rewarded by Ofgem for the quality of our plan and the additional value it represented to customers.
In addition, our investment plans also reflected the challenges we face to successfully navigate the different potential pathways to deliver Net Zero - an area in which we are leading in the development of a hydrogen energy future. 
We believe our Business Plan delivers for our customers: over £500m worth of efficiencies; a real reduction in their gas bill of over 10% for an average customer, a bill of less than £120 a year (less than 33p/day)*; improved customer services; and leading the way to a low carbon economy, to meet the UK’s Net Zero target by 2050.

*This represents only the 25% network costs of a total gas bill.  

We do not believe that Ofgem’s Final Determination (in December 2020) of our Business Plan, struck the right balance between bill reductions and funding the much-needed investment required to deliver improved services to our customers and Net Zero.                  

Background information -  RIIO2 and Cadent's Business Plan 2021-2026

Summary of our RIIO-2 plan - RIIO2-infographic.pdf

Cadent's RIIO-2 Business plan -

Ofgem's Final Determination was published on 8 December 2020.

The price control known as RIIO-2 ensures gas distribution companies have enough revenue to run an efficient network that delivers what customers need, while investing to deliver the infrastructure needed for a Net Zero future. It stands for Revenues = Incentives + Innovation + Outputs.

RIIO-2 starts on 1st April 2021 and runs for five years until 2026.


Cadent is the UK’s largest gas distribution network with a 200-year legacy.  We are in a unique position to build on strong foundations whilst encouraging the curiosity to think differently and the courage to embrace change.  Day to day we continue to operate, maintain and innovate the UK’s largest gas network, transporting gas safely and protecting people in an emergency.   Our skilled engineers and specialists remain committed to the communities we serve, working day and night to ensure gas reaches 11 million homes from Cumbria to North London and the Welsh Borders to East Anglia, to keep your energy flowing. 

Future of Gas: Here at Cadent we support the Government’s plans to reach Net Zero by 2050. That means we’re backing the introduction of hydrogen as a low carbon alternative to natural gas for the future. We know people love the controllability of gas and, with our network already in place, it makes sense to switch to the lower carbon alternative offered by hydrogen, which we believe can keep homes and businesses warm for generations to come.

Cadent manages the national gas emergency service free phone line on behalf of the gas industry - 0800 111 999*

Cadent Gas Ltd is owned by a consortium of global investors.

*All calls are recorded and may be monitored.

Media contacts

Stephanie van Rosse

07767 337343