Ofgem’s decision to raise the baseline profit margin for investors as part of its final determinations for the RIIO2 price controls has “probably done enough” to deter network companies from appealing the settlement, an industry analyst has told Utility Week. Colm Gibson, a managing director for the Berkeley Research Group, said the uplift represents a compromise between the regulator’s draft position and the preliminary findings of the Competition and Markets Authority in the appeal of four water companies against their final determinations.
‘Civil service solution’ enough to avert RIIO2 appeals
