Tuesday 23 February 2010
OFGEM'S DECISION AGAINST NATIONAL GRID'S
METERING CASE IS FURTHER ENDORSED BY THE
COURT OF APPEAL


Ofgem welcomes today's Court of Appeal ruling that
National Grid breached the law and acted anti-competitively in
the domestic gas metering market, endorsing Ofgem's April
2008 findings.

Today's ruling fully endorses the substance of Ofgem's
case, that the multi-million pound contracts struck by National
Grid with suppliers in 2002 when the metering market was
opened to competition harmed new entrants' ability to compete
and acted against consumers' interests.

The effect of the Court of Appeal's ruling is that suppliers
will be free to renegotiate the terms of contracts with National
Grid Gas, and it opens the door to claims for damages against
National Grid by competing meter operators, as the competition
law regime allows.

Welcoming today's ruling, Ofgem's Chairman Lord Mogg
said "We welcome the Court of Appeal's endorsement of
Ofgem's decision. This confirms that National Grid breached the
law and acted anti-competitively. It is a victory for consumers
and strikes a firm blow in favour of new and competing entrants
in Britain's energy market. Today's ruling shows that energy
companies who hold and abuse positions of market dominance
will face the full force of regulatory action and the law."

Today's ruling follows an earlier decision in April 2009 in
favour of Ofgem by the Competition Appeal Tribunal.