Following the rejection of the Utility Regulator’s price control determination and proposed licence modifications by Phoenix Natural Gas Ltd. (PNGL) on 6 February, we have referred the PNGL price control licence conditions to the Competition Commission. We are required by our statutory duties to refer the matter to the Competition Commission.
The price control determination followed a public consultation on our proposals. A further public consultation also took place on the associated licence modifications.
The Competition Commission will assess whether the PNGL price control licence conditions operate against the public interest and is expected to report within six months.
Our price control determination would lead to lower business and domestic consumer prices. For larger business consumers this would mean an estimated ongoing annual saving of tens of thousands of pounds on gas bills. The decision would also mean that, for the average domestic consumer, there would be a £10 per annum saving on gas bills. Had we accepted the PNGL proposals, domestic consumer bills would have been £25 higher per annum.
Formal notice - reference to the Competition Commission
Ends
For further information, please contact Adele Boyle on 07794 965922 or 028 9031 6343.