Ofgem has welcomed the Court of Appeals' ruling that National Grid breached the law and acted anti-competitively in the domestic gas metering market.

The ruling fully endorses the substance of Ofgem's case, that the multi-million pound contracts struck by National Grid with suppliers in 2002 when the metering market was opened to competition harmed new entrants' ability to compete and acted against consumers' interests.

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The effect of the Court of Appeal's ruling is that suppliers will be free to renegotiate the terms of contracts with National Grid Gas, and it opens the door to claims for damages against National Grid by competing meter operators, as the competition law regime allows.

Ofgem's Chairman Lord Mogg said: "We welcome the Court of Appeal's endorsement of Ofgem's decision. This confirms that National Grid breached the law

and acted anti-competitively. It is a victory for consumers and strikes a firm blow in favour of new and competing entrants in Britain’s energy market. The ruling shows that energy companies who hold and abuse positions of market dominance will face the full force of regulatory action and the law."

(CD/BMcC)