Ofgem Launches Price Review of National Grid's Fleetwood Gas Grid Point

By Alex MacDonald

LONDON--U.K. energy watchdog Ofgem said Tuesday it has launched a review of the price-control system for National Grid PLC's (NG.LN) Fleetwood natural gas grid entry point with a view to determining whether gas suppliers still need entry capacity.

The review could potentially reduce National Grid's GBP268.3 million price-control allowance, the regulator noted.

National Grid said the review was in line with previously announced expectations since Fleetwood had been left out of the most recent price control review to carry out an independent review.

The U.K. gas grid operator said the review is set to focus on future revenues and amendments to entry point's regulated asset value. It is not expected to result in any change to the entry point's return on equity or regulated asset value as previously reported in the gas transmission business in the group's 2015 to 2016 report.

-Write to Alex MacDonald at alex.macdonald@wsj.com

(END) Dow Jones Newswires

November 22, 2016 02:48 ET (07:48 GMT)

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