Background to the investigation

On the 24th June 2005, Ofgem announced that it was undertaking an investigation into the new contractual arrangements between National Grid and the gas suppliers concerning the provision of gas metering services.

" The contracts were developed in consultation with gas suppliers and Ofgem. "

Ofgem’s original allegation was that the contracts locked suppliers in for a significant share of their gas meter requirements and thereby restricted the development of competition in metering. Ofgem alleged that this conduct amounted to an abuse of dominance, which would infringe competition law. Throughout the course of the investigation, this allegation narrowed and focused more on the technical aspects of the contracts rather than the contracts themselves.