Request for Final Determination referral to CMA

Summary by AI ^BETAClose X

Southern Gas Networks plc and Scotland Gas Networks plc, collectively known as SGN, are seeking permission from the Competition and Markets Authority (CMA) to appeal Ofgem's RIIO-GD3 Final Determination, which was published on December 4, 2025, with the licence issued on February 3, 2026. SGN believes its proposed investment plan, designed to ensure the safety, reliability, and security of supply for six million customers across south London, the south of England, and Scotland, was not adequately reflected in Ofgem's determination. Despite constructive discussions, SGN and Ofgem could not reach an agreement on several points before the deadline, leading SGN to request CMA review. SGN remains committed to operational excellence during the CMA process.

Disclaimer*

Southern Gas Networks PLC

04 March 2026

SOUTHERN GAS NETWORKS PLC

(LEGAL IDENTIFIER NUMBER: 549300SPX8573VZ2SK79)

SGN Board seeks permission to bring an appeal against Ofgem's RIIO-GD3 Final Determination to the Competition and Markets Authority (CMA)

The Board of Directors at Southern Gas Networks plc and Scotland Gas Networks plc (together, "SGN") has requested the CMA to bring an appeal on elements of the RIIO-GD3. The licence was published by Ofgem on 3 February 2026 and was based on Ofgem's Final Determination published on 4 December 2025.

SGN is a leading engineering organisation that designs, builds, operates and maintains energy systems of today and tomorrow.

SGN's GD3 Business Plan set out the investment programme required, in our role as duty holder, to operate a safe and reliable gas network and to maintain security of supply for six million homes and businesses across south London, the south of England and Scotland. Our plan, which was the result of extensive stakeholder engagement, protected customers' interests by ensuring essential investment in safety, resilience and reliability, while keeping affordability firmly in view.

SGN and Ofgem held constructive discussions but have been unable to agree on a number of grounds prior to yesterday's deadline and therefore we have requested that the matter pass over to the CMA.

While the CMA process is ongoing, SGN remains committed to delivering operational excellence and outstanding service for all our customers.

For further information, please contact:

Felix Fletcher

Director of Corporate Finance and Treasury

Nexus

25 Farringdon Street,

London,

EC4A 4AB

+44 (0)7738 699 302

Felix.Fletcher@sgn.co.uk

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END