In February this year, GEMA – Ofgem's governing body – announced its decisions for RIIO-2 for the electricity and gas transmission and gas distribution network companies. Following this, a number of companies – including SSE, SSEN, Scotland Gas Networks, National Grid Electricity Transmission, Northern Gas Networks and Wales & West Utilities – sought permission from the CMA to appeal the decision.
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Having published its provisional determination, the CMA has found that GEMA "was wrong on a number of grounds".
Commenting on the publication of the CMA's provisional determination, a ScottishPower spokesperson said: "We will consider carefully all aspects of the CMA's provisional determination, particularly the CMA's rejection of our appeal on cost of equity, but our initial reaction is to welcome a number of the provisional findings, including the approach to outperformance.
"We are committed to supporting the drive to Net Zero through our investments in the electricity grid to bring on more renewables and to deliver cleaner transport, heating and industry. Only this week the UN's Intergovernmental Panel on Climate Change has set out, in the starkest terms, the urgency of taking action now.
"We believe the UK needs to remain attractive in the international competition for capital to deliver green infrastructure, and we will now consider what further evidence we can submit to the CMA on the importance of providing sufficient incentive for investment in our transmission network."
