National Grid stated that the contracts were negotiated over a two-year period, and were voluntarily entered into by gas suppliers and delivered immediate and substantial reductions in charges for meter services, saving customers around GBP120 million over the four years of their operation.
National Grid said that the downstream regulator Ofgem was consulted throughout the process of contract development and negotiation and has acknowledged that it had no intention to breach the Competition Act.
The grid operator said that it was convinced that the contracts do not infringe competition law and therefore believe that they should remain in full effect. It also believes that the GBP41.6 million fine imposed on it by the Gas and Electricity Markets Authority (GEMA) is wholly inappropriate.
Steve Holliday, National Grid’s CEO, said: National Grid has been instrumental in helping Ofgem to develop competition in the UK metering industry, and we strongly believe we have never acted anti-competitively in the development of our contracts. Despite nearly three years of exhaustive analysis by Ofgem, we believe there is no evidence that National Grid has harmed consumers, competition or gas suppliers, and we are left with no option but to present our case to the Competition Appeal Tribunal.
