From CMA to CAT: What Energy Networks Need to Know

The UK Government has consulted on significant changes to the way regulatory appeals are handled across the energy, water, aviation and communications sectors.

Under the proposals, regulatory appeals currently heard by the Competition and Markets Authority (CMA) would transfer to the Competition Appeal Tribunal (CAT). The consultation closed on 25 September 2026, giving electricity network operators and other affected organisations a limited opportunity to respond.

For the energy sector, the proposed reform is not simply about replacing one organisation with another. It could change how appeals are prepared, how technical evidence is presented and who can challenge a regulatory decision.

What Is the Government Proposing?

The Department for Business and Trade wants to simplify what it describes as a complex regulatory appeals system. Its proposals include transferring certain regulatory appeals from the CMA to the CAT. This would cover energy licence modification and price control decisions made by regulators including Ofgem and the Utility Regulator in Northern Ireland.

The Government is also considering a more consistent appeal standard across different regulated sectors. Common rules would be introduced covering who can bring an appeal, how appeals are managed and how costs are handled.

These proposals remain subject to consultation. However, electricity network operators should consider how the changes could affect future regulatory decisions and the evidence required to challenge them.

What Is the Difference Between the CMA and CAT?

The CMA is responsible for promoting competition and protecting consumers. Alongside its wider responsibilities, it currently hears certain appeals against decisions made by sector regulators.

The CAT is a specialist judicial body that hears cases involving competition and economic regulation. It already deals with appeals and claims across a number of regulated markets.

Moving energy licence appeals to the CAT could create a more legal and adversarial process. The parties involved may need to take greater responsibility for assembling their evidence, presenting their arguments and demonstrating precisely why a regulatory decision is materially wrong.

Would the Appeal Test Change for Energy Networks?

Energy licence modification appeals already use a relatively narrow, grounds-based test. An appellant must identify a specific error involving fact, law or the regulator’s use of discretion.

This means the underlying test may not change as substantially for energy networks as it could for some other sectors. However, the change of forum could still have important practical consequences.

CAT proceedings may place greater emphasis on the way evidence is prepared, explained and tested. Network operators could therefore face increased pressure to maintain a clear technical and regulatory record throughout the original decision-making process.

Why Should Electricity Networks Respond?

The consultation provided electricity network operators with an opportunity to comment before the new system is finalised.

The Government sought views on matters including the proposed transfer, the standard of appeal, eligibility, costs and the practical operation of the new process. These decisions could influence the time, resources and evidence required to challenge future regulatory decisions.

Electricity networks understand how regulatory decisions operate in practice. Their experience can help identify where apparently straightforward reforms could create unintended consequences for network investment, planning, innovation or compliance.

Responding also gave operators an opportunity to highlight the specialist nature of electricity network regulation. Many decisions depend on detailed engineering evidence, network modelling, asset information and long-term investment assumptions which may not fit neatly into a standardised appeals process.

Technical Evidence Could Become Even More Important

One of the most important issues is the role of technical evidence. Electricity network decisions are rarely based on regulation or economics alone. They can involve network planning assumptions, equipment performance, asset condition, safety obligations, demand forecasts and the expected impact of low-carbon technologies.

If future appeals become more dependent on the evidence submitted by the parties, network operators will need to demonstrate how their technical conclusions were reached. It may not be sufficient to simply present an alternative view.

Organisations may need to show that their information is accurate, their methodology is appropriate and their proposed approach is materially better than the position adopted by the regulator.

This places additional importance on creating a strong evidence base before a regulatory decision is made.

The Importance of Clear Technical Documentation

Good technical documentation supports more than the appeal itself. It creates a clear record of the engineering decisions, assumptions and standards used throughout a project or regulatory submission.

Policies, engineering specifications, network studies, asset data and technical reports should be consistent and capable of standing up to external scrutiny. Information should also be traceable, properly controlled and supported by an appropriate decision-making process.

Weak or fragmented documentation can make it much harder to demonstrate why an engineering approach was reasonable. It can also create uncertainty when evidence must be revisited months or years after the original decision.

Threepwood Consulting provides specialist support with the development and maintenance of technical documentation for electricity distribution and transmission networks. This includes helping organisations create clear, practical and controlled engineering documents that reflect the way their networks are designed, operated and maintained.

Supporting Electricity Network Compliance

Regulatory decisions often sit at the point where engineering requirements, statutory responsibilities and network standards meet. Threepwood Consulting supports network operators and asset owners with electricity network compliance, planning and the interpretation of technical standards. Our consultants combine detailed industry knowledge with practical experience of how electricity networks operate.

We can help organisations review their existing policies, procedures and technical evidence, identify gaps and develop documentation that provides a clear basis for future decisions.

This support is particularly valuable where a regulatory submission depends on complex engineering information being presented in a clear, consistent and defensible way.

Asset Management and Regulatory Decision-Making

Effective asset management can also strengthen the quality of regulatory evidence. An established asset management system helps an organisation demonstrate how investment decisions have been made, how risks have been assessed and how network performance is being managed over the long term.

Threepwood Consulting supports organisations with electrical asset management and ISO 55001. We can help develop asset management policies, strategies and supporting processes that connect technical decisions with wider organisational objectives.

This creates a more reliable evidence trail and helps ensure that regulatory submissions are supported by structured, repeatable decision-making.

What Should Network Operators Do Now?

Electricity network operators should review the consultation and consider whether the proposed system provides an appropriate route for resolving complex regulatory disputes.

Particular attention should be given to how technical evidence would be assessed, whether the proposed eligibility rules are suitable and how the potential costs of an appeal could affect access to the process.

Operators should also consider the strength of their existing technical documentation. Regardless of the final outcome of the consultation, clear evidence and well-controlled engineering information will remain essential when engaging with regulators.

The consultation closed on 25 September 2026.

How Threepwood Consulting Can Help

At Threepwood Consulting, we help electricity distribution and transmission organisations improve the safety, performance and management of their networks.

Our services include electricity network compliance and innovation, technical documentation, electrical asset management, network planning and specialist engineering support.

If your organisation needs help reviewing its technical evidence, developing network documentation or strengthening the engineering basis behind a regulatory submission, speak to our team.

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