Wales & West Utilities has today confirmed it will be seeking to appeal to the Competition and Markets Authority (CMA) against Ofgem’s Final Determination on its settlement for the RIIO-GD2 Price Control period.

The company, which owns and operates the network that keeps the gas flowing to Wales and south west England, submitted its 2021-2026 Business Plan in December 2019. Informed by feedback from over 25,000 customers, it reflected the views of communities right across its large operating region. Customer priorities included keeping the gas flowing safely and reliably to homes and businesses today, investing for a green future, and enhancing the support available to look after the most vulnerable.

The energy sector will power the UK’s recovery from Coronavirus and be at the heart of the transition to Net Zero - helping to decarbonise home heating, heavy industry, power, and transport. It is essential that the RIIO-GD2 regulatory settlement allows Wales & West Utilities to deliver what customers across Wales and south west England want and need - whilst also enabling long term investment in the UK.

Following several weeks of detailed review, the company’s Board and executive management team have concluded that Ofgem’s RIIO-GD2 Final Determination does not provide the level of allowances required to deliver the priorities that communities across Wales and south west England have said are most important to them.

Since starting operations in 2005, we have consistently been a top performer and one of the most efficient companies, delivering outstanding levels of customer service, gas safety, and reliability.

As the UK recovers from Coronavirus and aims for Net Zero, this is a critical time for the energy industry. It is essential that the regulatory settlement allows us to deliver our customer priorities: keeping the gas flowing safely and reliably, investing strategically to prepare for a green future, and looking after the most vulnerable across our operating region.

Ofgem’s Final Determination puts this at significant risk and is not in the best interest of communities across Wales and south west England, nor our business. 

We have therefore asked the CMA for permission to appeal, which is the final step in the regulatory process, and is specifically designed to allow outcomes to be independently reviewed and underpins broader confidence in the UK’s regulatory system.

Wales & West Utilities Director of Regulation, Sarah Williams