National Grid (LSE:NG.) PLC (LSE:NG.) is preparing a response to the Competition and Markets Authority’s (CMA) provisional determination for the RIIO-2 network price controls framework.
The provisional verdict seems to have been the proverbial Curate’s Egg so far as the electricity grid operator is concerned, with the group pleased to note that the CMA has found in favour of the technical arguments on the so-called “outperformance wedge”, but disappointed that the regulator has not found in favour on the cost of equity.
The @CMAgovuk has published its provisional determination on our technical appeal for our #RIIO2 business plans. Read our response: https://t.co/XrSclQw8Nb
— National Grid (LSE:NG.) UK (@nationalgriduk) August 11, 2021
“We will now review the detailed documents to determine the CMA's rationale for this provisional determination and will be responding within the statutory timeline. The final determination from the CMA is expected to be published by the end of October,” National Grid said.
Shares in National Grid were down 0.9% at 943.2p after an hour of trading.