Yeo warns CMA on withholding networks evidence

The former chair of the energy select committee has warned the Competition and Markets Authority against “any lack of transparency” in its ongoing investigation into networks price controls.

Tim Yeo has spoken out against the CMA’s decision not to publish evidence submitted to it as part of its investigation, telling Utility Week exclusively that the CMA should make its evidence public.

“The quasi monopoly position of the distribution companies has long been a concern of mine,” Yeo said.

“These distribution companies receive less public and media scrutiny than, for example, the big six, despite the fact that their charges are a significant element in consumer bills. It is therefore all the more important that their submissions should be published at the earliest possible date,” he added.

Unlike in the CMA’s wider investigation into energy market competition, the submissions made to the CMA as part of the inquiry into Ofgem’s RIIO-ED1 network price controls will not be published because the authority has no statutory obligation to do so.

But Yeo said the “strong suspicions” that networks have been dealt with too leniently means “any lack of transparency on the part of the CMA” would be regrettable.

Yeo was an outspoken critic of Ofgem’s regulation of networks while heading up the Energy and Climate Change Committee. And in March this year Utility Week exclusively revealed that British Gas followed suit, referring Ofgem’s price settlement for five of the six electricity networks to the CMA on the grounds that it is too lenient.

The supplier had been vocal in its criticism of network costs, calling on Ofgem last year to shave £500 million off its settlement and, in February, the Energy and Climate Change Committee accused Ofgem of dropping the ball on network costs, saying its settlement was too generous.

Northern Powergrid, one of the five companies affected by the referral, also sought permission to appeal against its RIIO-ED1 settlement, criticising it for being too tough.

The affected companies are UK Power Networks, Electricity North West, Northern Powergrid, SSE and Scottish Power, which hold 10 regional distribution licenses between them. But Western Power Distribution, whose regulatory settlement was fast tracked by the regulator last year, has not been affected.

The CMA has until September to determine the appeal.