A statement from Dr Tony Ballance, Chief Strategy & Regulatory Officer at Cadent:
We are the UK’s largest gas distribution network, delivering energy to over 11 million homes and businesses, across the UK.
Our RIIO-3 business plan builds on the sector-leading service we are currently delivering for our customers and drives significantly greater efficiencies into the next price control period. Our RIIO-3 plan was built around a core set of critical services customers desired in RIIO-2 and new stand out commitments for the forthcoming period, including:
We welcome Ofgem’s recognition of the quality of our plan and our sector-leading performance on costs through its Business Plan Incentive, with our networks setting the cost efficiency benchmark for the industry.
The decision taken by Ofgem in the Final Determination, however, to apply a further stretch on ongoing efficiency of 1% per annum is not supported by the available economic evidence and equates to Cadent needing to find significant additional cost savings on our sector leading plan.
We have engaged extensively with Ofgem on this issue, and, after very careful deliberation, we have taken the next step in the regulatory process by seeking permission to appeal this technical aspect of the Final Determination to the Competition and Markets Authority (CMA).
Throughout the CMA process we will remain absolutely focused on continuing to deliver operational excellence and great service for our customers.
Our RIIO-3 Business Plan can be found here
RIIO is Ofgem’s framework for setting price controls for the gas distribution networks. RIIO-2 - sets out what we are expected to deliver from 2021-2026. RIIO-3 applies from 1 April 2026 to 31 March 2031
Our RIIO-3 Business Plan is a real demonstration of our purpose, ‘Keeping people warm and powering industry, while protecting the planet.
Our RIIO-3 plan builds on the solid foundations formed through our previous plan, whilst continuing to push the boundaries for the sector.
We have 12 commitments from RIIO-2 we will continue to deliver. These are some of our key services that we have embedded already, which we will continue to deliver to meet customer’s ongoing needs and expectations during the RIIO-3 period.
We have added an additional seven new standout commitments which go above and beyond business as usual and we believe are industry firsts.
There are two stand out features that go above and beyond our passion to deliver leading customer service at an efficient cost: first to drive down the level of methane leakage from our network; and second to continue of our sector leading work in protecting the most vulnerable in society.
This plan really highlights our purpose, ‘Keeping people warm and powering industry, while protecting the planet.’
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.
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.
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