Wales and West Utilities Limited, R (on the application of) & Anor. v Gas and Electricity Markets Authority & Ors.

Wales and West Utilities Limited, R (on the application of) & Anor. v Gas and Electricity Markets Authority & Ors.

The CMA correctly interpreted and applied the relevant statutory provisions, lawfully adopted a standardised approach to cost of debt and tax allowances with appropriate adjustments, and did not act irrationally or discriminatorily. WWU failed to demonstrate any arguable ground for judicial review on any of the five...

Source-derived case information.

Parties
Claimant: Wales & West Utilities Limited; Defendant: Competition and Markets Authority; First Interested Party: Gas and Electricity Markets Authority; Interested Party: Cadent Gas Limited; Interested Party: National Grid Electricity Transmission PLC; Interested Party: National Grid Gas PLC; Interested Party: Northern Gas Networks Limited; Interested Party: Scottish Hydro Electric Transmission PLC; Interested Party: Southern Gas Networks PLC; Interested Party: Scotland Gas Networks PLC; Interested Party: SP Transmission PLC; Interested Party: British Gas Trading Limited; Interested Party: Citizens Advice; Interested Party: Water Services Regulation Authority; Interested Party: Electricity North West Limited
Jurisdiction
England and Wales
Judgment Date
21 November 2022
Procedural Posture
Judicial Review / Renewed Application for Permission to Apply for Judicial Review
Outcome
Application for permission to apply for judicial review dismissed
Legal Topics
Judicial Review, Statutory Interpretation, Regulatory Decision Making, Gas Act 1986, Price Control, Cost of Debt Allowance, Tax Allowance, Discrimination, Rationality, Standing
Administrative Law Energy Law Regulatory Law Judicial Review Statutory Interpretation Regulatory Decision Making Gas Act 1986 Price Control +5 more

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Summary, issues, holding and outcome

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Parties

Wales & West Utilities Limited

Claimant

Competition and Markets Authority

Defendant

Gas and Electricity Markets Authority

First Interested Party

Cadent Gas Limited

Interested Party

National Grid Electricity Transmission PLC

Interested Party

National Grid Gas PLC

Interested Party

Northern Gas Networks Limited

Interested Party

Scottish Hydro Electric Transmission PLC

Interested Party

Southern Gas Networks PLC

Interested Party

Scotland Gas Networks PLC

Interested Party

SP Transmission PLC

Interested Party

British Gas Trading Limited

Interested Party

Citizens Advice

Interested Party

Water Services Regulation Authority

Interested Party

Electricity North West Limited

Interested Party

Procedural Posture

Judicial Review / Renewed Application for Permission to Apply for Judicial Review

Legal Issues

  1. 1 Whether the Competition and Markets Authority (CMA) erred in law in its interpretation and application of sections 23D(2) and (4)(a) and (b) of the Gas Act 1986
  2. 2 Whether the CMA misdirected itself regarding the financing duty in section 4AA(2)(b) of the Gas Act 1986
  3. 3 Whether the CMA's approach to WWU's cost of debt appeal was irrational or discriminatory

Ratio Decidendi

The CMA correctly interpreted and applied the relevant statutory provisions, lawfully adopted a standardised approach to cost of debt and tax allowances with appropriate adjustments, and did not act irrationally or discriminatorily. WWU failed to demonstrate any arguable ground for judicial review on any of the five grounds advanced, and lacked standing to challenge certain licence modification decisions.

Court Disposition

Application for permission to apply for judicial review dismissed

Orders

  • Permission to apply for judicial review refused on all grounds
  • Costs to be determined if not agreed