The competition watchdog has sided with Great Britain’s energy regulator after an industry rebellion over a clampdown on the returns energy network companies can make at the expense of customer bills.
The Competition and Markets Authority (CMA) received multiple appeals from energy companies, including National Grid and Scottish Power, earlier this year after Ofgem set out plans to limit their returns on investing in the UK’s gas pipes and electrical cables.
Jonathan Brearley, Ofgem’s chief executive, said the regulator was “fully focused on keeping bills as low as possible for customers” while supporting the investment needed to create a green energy system, and the CMA’s ruling was “an important step forward towards this goal.”
“The CMA has found in favour of Ofgem on most grounds of appeal, including the reduction in returns for investors,” Brearley said. “We will continue to engage with the CMA to finalise these price controls, and look forward to working with the industry to deliver efficient investment which will benefit both consumers and the planet.”
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