In June 2005 National Grid sold four of its eight regional gas distribution networks for £5.8 billion. The Office of Gas and Electricity Markets (Ofgem), whose primary statutory duty is to protect consumers, was responsible for approving the sales.

Ofgem concluded that the potential benefits for customers from the sales could be £325 million over the period 2008 to 2023.  However, Ofgem also predicted that 80 per cent of these savings would not come until after 2013 and is not confident that the benefits will be achieved.

Mr Bacon said today:

“Consumers should not have to wait until 2013 before they can benefit from the £325 million in savings. Even this works out at only £1 per consumer per year, which is hardly anything given the climbing price of gas”.

“Ofgem’s first and most important duty is to get the best deal for consumers, who are getting very little out of the sale of these four networks.  Ofgem must make sure consumers get some benefit from these deals sooner rather than later and that the savings identified do not disappear without a trace”. 

11 January 2007

See also:
PAC REPORT: Gas distribution networks
PARLIAMENT: MP urges watchdogs to do better for consumers

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