28 October 2021

National Grid plc

CMA publishes final determination for the RIIO-2 price control appeals

The CMA has published its final determination in relation to the RIIO-2 price control appeals this morning.

We are pleased that, in line with its preliminary determination in August, the CMA has found in favour of the technical arguments on the outperformance wedge and that it has therefore directed Ofgem to remove the outperformance wedge from the price control. We are disappointed that the CMA has not found in favour on the cost of equity. We will review the detailed documents to understand the CMA's rationale for this final determination, which we expect to be published next week.

We anticipate that revenues will be increased from 2022/23 onwards to reflect the CMA's decision to remove the outperformance wedge.

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