Competition watchdog to review Rough gas storage requirements

The Competition and Markets Authority (CMA) is to review the requirements placed on Centrica’s Rough gas storage facility. The giant facility in the North Sea stores gas in the summer […]

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By Priyanka Shrestha

The Competition and Markets Authority (CMA) is to review the requirements placed on Centrica’s Rough gas storage facility.

The giant facility in the North Sea stores gas in the summer and delivers it in the winter to help meet the high demand.

In June, Centrica said it intends to close the storage facility due its physical deterioration.

However, the closure can only take place if current undertakings required by the CMA have been removed.

The energy firm therefore requested a review of its undertakings, which include a requirement to keep Centrica Storage Limited (CSL) legally, financially and physically separate from its parent company Centrica and prevent CSL from discriminating in favour of Centrica or other users of Rough.

They also include an obligation for CSL to sell a specific amount of capacity before the start of each storage year, limiting the amount which can be supplied to Centrica and enabling Ofgem to vary the capacity the energy company is required to offer for sale.

The review is expected to be completed before the end of the year.