Cadent Finance PLC Ofgem's Draft Determination: Consultation Response (8909Y)
14 Settembre 2020 - 11:26AM
UK Regulatory
TIDM46XU TIDMTTM
RNS Number : 8909Y
Cadent Finance PLC
14 September 2020
CADENT FINANCE PLC
(LEGAL ENTITY IDENTIFIER: 5493005MBTJ0J6IMUF67)
Ofgem's Draft Determination: Consultation Response
14 September 2020
Cadent Gas Limited ("Cadent"), the guarantor under the Company's
GBP6,000,000,000 Euro Medium Term Note Programme, submitted its
response to the RIIO-2 Draft Determination to Ofgem on 4 September
2020. The summary of Cadent's response (the "Cadent Summary of
Response") can be found at:
https://cadentgas.com/news-media/document-library
In the Cadent Summary of Response, Cadent stated that:
-- their customers and stakeholders have worked with them to set
out an ambitious, but achievable plan, and Cadent was very
surprised by Ofgem's initial response to it as set out in the Draft
Determination;
-- the cost challenge proposed in the Draft Determination is unachievable and unrealistic; and
-- the proposed GBP701m additional efficiency challenge, on top
of the GBP505m of totex efficiencies contained in Cadent's plan is
neither in customers' short, or long-term, interests.
Cadent further stated that:
-- they believe that the cost challenge proposed in the Draft
Determination is a result of a significant number of material
errors, including basic data and arithmetic errors - combined with
the adoption of a benchmarking methodology that is not robust; a
lack of allowance for regional factors; and errors in the
calculation of ongoing efficiency; and
-- the result of these errors and lack of consistency across
networks presents Cadent with an unworkable and unfinanceable plan
whilst also funding other networks more than their requirements to
the clear detriment of all customers.
Cadent conclude that, in its current form, the Draft
Determination from Ofgem does not enable Cadent to finance the
services they are delivering for their customers and the activities
they are obligated to deliver under the licence and their statutory
requirements.
Cadent believe there is a considerable amount of work to do to
resolve the issues Cadent have raised to deliver a robust, fair and
proportionate set of proposals in Final Determinations. It is
critical that these issues are addressed for Cadent's customers and
indeed for all customers across the UK. Cadent are keen to offer
every assistance they can to help Ofgem achieve this and remain
committed to working constructively for the benefit of
customers.
Inside Information
This announcement is released by Cadent Finance plc and contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) 596/2014 ("MAR"). For the purposes of MAR and
Article 2 of Commission Implementing Regulation (EU) 2016/1055,
this announcement is made by Diane Bennett (Secretary) at Cadent
Finance plc.
Enquiries
For further information, please contact:
Helena Norgate
Cadent Finance plc
Ashbrook Court Prologis Park
Central Boulevard
Coventry
CV7 8PE
Email: Helena.norgate@cadentgas.com
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END
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