皇冠体育app

In December 2016, the Competition and Markets Authority (CMA) granted permission to Firmus Energy (Distribution) Ltd (FE) to appeal on 4 grounds against the UR鈥檚 decision to modify its licence.

FE has the licence to develop a gas distribution network in 10 towns across Northern Ireland (NI). This appeal relates to the price control on FE, which was one of the price controls made by the UR for the 6-year period from January 2017 to December 2022.

In its determination, the CMA has allowed the appeal on some of the grounds. It has allowed the appeal on one ground, concerning the incentive to connect new customers to the gas network. 皇冠体育app CMA has also allowed the appeal in part on one other ground in relation to FE鈥檚 operational expenditure (opex) 鈥� the amount allowed for the costs of operating its gas distribution network. It will therefore quash the UR鈥檚 decision on those points. 皇冠体育app CMA rejected FE鈥檚 appeal in whole on 2 other grounds.

皇冠体育app CMA has remitted the connection incentive matter back to the UR for reconsideration, requiring it to determine the appropriate value within 6 months.

In addition, the CMA determined that the opex allowance for FE should include an allowance for extra costs for one omitted item. 皇冠体育app UR has already, last month, implemented a modification to FE鈥檚 licence allowing an increase in opex allowance to account for these costs.

皇冠体育app UR announced the and published its .

皇冠体育app final determination will be published shortly on the case page, where other information relating to this appeal can be found.

Notes

1. An energy licence holder may appeal to the CMA against a decision by the UR to amend the conditions of its licence. 皇冠体育app CMA must decide whether the appellant has demonstrated that the UR鈥檚 decision was wrong on one or more of the grounds set out in its notice of appeal.

2. 皇冠体育app CMA鈥檚 group of panel members determining the appeal (the Group) has been: Phil Evans (Chair), Roger Finbow and Jon Stern.

3. 皇冠体育app Group received and considered submissions from interested parties in addition to those from FE and the UR.

4. 皇冠体育app appeal has been conducted according to the CMA鈥檚 published Energy licence modification appeals rules and Energy licence modification appeals guidance.

5. 皇冠体育appre were 4 grounds of appeal, with 12 sub-grounds in total. 皇冠体育app 2 grounds which were rejected in whole concerned the treatment of under-recoveries (through which FE can delay receipt of allowed revenue), and the appropriate weighted average cost of capital and the ability of FE to finance its operations.

6. 皇冠体育app 鈥榗onnection incentive鈥� is a mechanism designed to promote connections by customers to the gas network.