The provisional decision by the Competition and Markets Authority (CMA) earlier this week to uphold the cost of equity set by Ofgem for the RIIO2 price controls represents a “victory” for the regulator, one of its former partners has stated. However, the transmission and gas distribution have also landed some "punches" with their appeal against Ofgem’s final determinations after the CMA concluded the regulator should not have applied a downward adjustment the baseline rate of returns to account for expected outperformance.
Energy networks have ‘landed some punches’ against Ofgem
