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Current and future developments
Metering competition investigation
As described in Legal and related matters, in June 2005, Ofgem announced that certain aspects of the domestic gas metering business were to be investigated by it under the Competition Act 1998 and information requested as part of this investigation has been provided to Ofgem. No findings have been issued with respect to this investigation. However, a supplemental statement of objections was issued by Ofgem in April 2007 to which we will respond shortly.
Property and environmental matters
In 2006, the Health and Safety Executive (HSE) issued new planning guidance on the development of sites in close proximity to hazardous installations, including gas holders. Without taking mitigating action, this could lead to a reduction in the selling price likely to be realised for our sites located close to gas holders. A review of the property portfolio was undertaken in the year and it is anticipated that the future impact of the new regulations can be minimised through our ongoing programme of mains replacement and holder demolition.
As described in Legal and related matters, a case is before the House of Lords regarding a former gas site which was not part of the assets that formed part of the gas privatisation in 1986 and therefore has never been owned by National Grid. We remain convinced of our case that National Grid has no legal liability with respect to this or other former UK gas sites which did not form part of the assets we acquired at the time of privatisation and believe that our position will be upheld by the House of Lords.