Competition Commission Decision Is Bad News For Gas Users
MNI has expressed its dismay at the recent provisional decision by the Competition Commission in the dispute between the Utility Regulator and Phoenix Natural Gas. Chief Executive Bryan Gray said "The Competition Commission's provisional decision indicates that they plan to allow Phoneix Natural Gas to enjoy the benefits of outperformance for the next 35 years - a total of 40 year in all, when the norm in regulated utility industries is only 5 years. This has the potential to put some 2-3% on the price of natural gas in the Nothern Ireland for the next 35 years with a huge impact on the competitiveness of local manufacturers who are already struglling to compete with companies in both GB and RoI who enjoy much lower electricity prices"
MNI will be making a further submsission to the Commission highlighting the impact of this provisional decision and protesting in the strongest possible terms about the discriminatory application of charges to gas users in Northern Ireland.
Full details of the Commissions decision can be found here:- http://www.competition-commission.org.uk/assets/competitioncommission/docs/2012/phoenix-natural-gas-limited/provisional_determination.pdf while the Regulators statement on the issue is available here:- http://www.uregni.gov.uk/news/view/utility_regulator_comment_on_the_competition_commissions_provisional_determ/