SGN’s GD3 Business Plan set out the investment programme required, in our role as duty holder, to operate a safe and reliable gas network and to maintain security of supply for six million homes and businesses across south London, the south of England and Scotland.
Our plan, which was the result of extensive stakeholder engagement, protected customers’ interests by ensuring essential investment in safety, resilience and reliability, while keeping affordability firmly in view.
Throughout the process we engaged extensively and constructively with Ofgem. However, we believe the Final Determination did not strike the right balance between maintaining the safe operation of our networks today and ensuring the long‑term investability needed to support future resilience.
For this reason, we are appealing to the Competition & Markets Authority on three grounds.
We consider the Ongoing Efficiency target set for GD3 to be significantly higher than can reasonably be supported by market evidence or historic performance.
The second and third grounds relate to specific errors in the calculation of our allowances. These result in SGN being underfunded to deliver projects that have been agreed with Ofgem due to errors in the cost assessment process.
SGN remains fully committed to delivering our GD3 programme, continuing to operate a safe, dependable network and providing the high‑quality, award‑winning customer service our communities expect.
