The Competition and Markets Authority (CMA) has issued its provisional decision on the appeals brought by all of the transmission and gas distribution networks against their final determinations for the RIIO2 price controls, largely upholding Ofgem’s decision to drastically reduce returns to investors. However, the CMA has ruled against Ofgem’s decision to set allowed equity returns 25 basis points below its actual estimate of the cost of equity.
CMA upholds reduction to energy network returns
