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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.