SSE Code Modifications Appeal 2021

This will be released by way of an update on the CMA's case page

50980: SSE Code Modifications Appeal 2021

The CMA has dismissed an appeal by SSE against decisions by Ofgem

SSE has lost its appeal to the CMA (Competition and Markets Authority) against Ofgem decisions to approve proposals to modify industry charging rules.

The appeal related to changes to the calculation of charges paid by electricity generators, including SSE, for use of the electricity transmission system.

Ofgem approved changes to industry rules which it considered would better ensure that charges in 2021/22 would be within the range permitted under retained EU law. Ofgem recognised that the changes were imperfect and made clear that it expected National Grid Electricity System Operator Limited, as the transmission system operator, to propose further changes to take effect by 1 April 2022.

SSE argued that Ofgem was wrong to have approved the changes and that they could have led to transmission charges being outside the range allowed under the relevant law.

The CMA did not agree with SSE. The CMA decided that, on the points raised by SSE in the appeal, Ofgem was not wrong to have approved the changes. The reasons for this included that the changes made a breach of the law in 2021/22 much less likely and further changes were expected to take effect by 1 April 2022.

The CMA's determination, setting out full reasons for dismissing the appeal, will be published on this case page shortly.