CMA publishes issues statement and timetable for Rough review

Competition and Markets Authority

November 5
11:59 2015

Rough is a gas field in the North Sea used to store gas in the summer and deliver it in winter when the gas is needed to help meet high demand. It is an important part of the UKs gas storage infrastructure and capacity.

The Competition and Markets Authority (CMA) announced last month that it would carry out a review of the undertakings relating to the operation of the facility following a request made by Centrica plc (Centrica) and Centrica Storage Ltd (CSL).

The undertakings include a requirement to keep CSL, the operator of Rough, legally, financially and physically separate from its parent company Centrica, and to prevent CSL from discriminating in favour of Centrica or other users of Rough. The undertakings also include an obligation for CSL to offer for sale a specific amount of capacity before the start of each storage year and limit the amount which can be supplied to Centrica.

CSL has submitted that, as an ageing asset, Roughs performance is more likely to vary in the future, increasing the chance that it may not meet its capacity obligations under the undertakings. CSL has asked the CMA to vary the undertakings to allow for Roughs changing physical capabilities.

The statement identifies for interested parties the issues the panel members propose to focus on and invites views on any areas not covered.

The statement and administrative timetable are available on the case page along with all other published information relating to the review.

Anyone wishing to respond to the issues statement should do so in writing, by 5pm on 26 November. Please email, or write to:

Project Manager
Rough Undertakings Review
Competition and Markets Authority
Victoria House
Southampton Row
London WC1B 4AD

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