28 September 2016
Letter to potential buyers of gas distribution network assets
Ofgem has today published a letter to potential buyers of the majority stake in National Grid's four gas distribution networks and part of SSE's equity stake in SGN, which distributes gas across Scotland and the south of England.
Ofgem regulates these businesses under our RIIO-GD1 price control (2013-2021) for gas distribution. The regulator is reminding bidders that firm decisions have not yet been made about RIIO-GD2, the price control period after 2021, and if they purchase these businesses at a premium over the Regulatory Asset Values, they will not be compensated for that premium. Ofgem does not need to provide consent for the sale of shares in either transaction.
Notes to editors:
A link to letter Ofgem has published is here: https://www.ofgem.gov.uk/publications-and-updates/open-letter-sale-gas-distribution-networks
Ofgem is the independent energy regulator for Great Britain. Its priority is to make a positive difference for consumers by promoting competition in the energy markets and regulating networks.
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