National Grid to appeal metering contracts fine

29th May 2009 07:08

Gas and electricity pipeline grid operator National Grid is to appeal a Competition Appeal Tribunal (CAT) judgement on Gas Metering Contracts.On 29 April 2009, the Tribunal agreed with regulator Ofgem's original finding that the company was in breach of competition law by entering into a number of metering contracts with UK gas suppliers in 2004.CAT did reduce an original fine of £41.6m to £30m, but it was still the highest penalty for abuse of dominance imposed so far in the UK. At the time of that decision, National Grid said it was disappointed at the £30m fine as the Tribunal found that there was no abuse in respect of its new and replacement gas metering contracts and today decided to go a step further. "We believe an appeal is in the best interests of customers. We continue to believe that our gas metering contracts have delivered substantial financial benefits to customers in the form of lower metering prices and have neither harmed consumers nor competition," National Grid Executive Director, Mark Fairbairn said today.National Grid will be applying to CAT for leave to appeal to the Court of Appeal.