The Competition and Markets Authority (CMA) has confirmed its decision to remove the requirements placed on Centrica’s Rough gas storage facility in the North Sea.
The announcement will help the energy giant with the closure of the facility, which it has deemed unsafe due to its physical deterioration, the associated safety risks and the high cost of refurbishing it.
The undertakings include the legal, financial and physical separation of Centrica Storage Limited (CSL) from Centrica, restrictions on the energy giant’s access to capacity and ensuring non-discriminatory access to capacity for Rough’s customers.
Martin Cave, Chair of the Inquiry Group said: “After a public consultation on our provisional findings, the CMA has made the final decision based on the age and degradation of the gas wells and other facilities at Rough. These mean it is no longer capable of safe operation for gas storage without substantial refurbishment.
“Present and anticipated market conditions were also considered, which meant the level of investment required to meet the legal obligation to operate safely was not economically viable. These considerations have led to our final decision that the undertakings are no longer required and so will be removed.”
The closure of the facility must however be agreed by the Oil & Gas Authority.