Ofgem’s approach to energy network mergers and statement of methods

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This document sets out our proposed approach to energy network mergers and statement of methods under the new special merger regime introduced under the Energy Act 2023.

The Energy Act 2023 has introduced into the Enterprise Act 2002 a special merger regime applicable to relevant merger situations where two or more of the enterprises that cease to be distinct are energy network enterprises of the same type.
Under the amended Enterprise Act 2002, Ofgem is required to prepare and consult on its statement of methods, which sets out the criteria we will use to assess the impact of a merger on our ability to make comparisons and the weighting applied to those criteria.

This consultation is open until 24 January and we will issue the final version of the Statement of Methods upon consideration of all consultation responses.

Respond name

Mark Cassidy

Respond telephone

[0203 263 9800](tel:0203 263 9800)

Respond email

mark.cassidy@ofgem.gov.uk

Main document

[Approach to Energy Networks Mergers and Statement of Methods [PDF, 393.83KB]

](https://www.ofgem.gov.uk/sites/default/files/2023-12/Approach%20to%20Energy%20Networks%20Mergers%20and%20Statement%20of%20Methods.pdf)

Response documents

[240124 Ofgem consultation on energy mergers guidance Linklaters [PDF, 239.80KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-04/240124_Ofgem%20consultation%20on%20energy%20mergers%20guidance_Linklaters.pdf)

[NPg Energy Network Mergers Consultation Response v1.0 [PDF, 199.86KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-04/NPg%20Energy%20Network%20Mergers%20Consultation%20Response_v1.0.pdf)

[UKPN Ofgem’s approach to energy network mergers and statement of methods v1.0 [PDF, 154.89KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-04/UKPN%20Ofgem%E2%80%99s%20approach%20to%20energy%20network%20mergers%20and%20statement%20of%20methods%20v1.0.pdf)

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