Cadent's response to the Competition & Markets Authority's final determination

Oct 28 2021 corporate

The Competition and Markets Authority (CMA) has today announced its final determination of Cadent's appeal in relation to our RIIO-2 Business Plan. Our appeal sought to challenge specific errors. We need to take some time to review the details of the final determination but are pleased that some of these important errors have been corrected and it has been confirmed that we set the new efficiency benchmark for the industry as we set out to do.

We remain committed to providing the best for our customers and ensuring that Cadent can continue to deliver a safe and reliable energy network now and lead the development of a net zero future.

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 - https://cadentgas.com/about-us/our-company/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

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.