National Grid Electricity Transmission plc (NGET) is the system operator (SO) for the electricity transmission system in Great Britain (GB), with responsibility for making sure that electricity supply and demand stay in balance and the system remains within safe technical and operating limits.
National Grid Gas plc (NGG) is the SO for the gas National Transmission System (NTS) in GB and has responsibility for the residual balancing activity on the NTS.
In both gas and electricity we consider it is important that each SO has appropriate commercial incentives to operate their systems in an economic and efficient manner, as they are required to do under the terms of their licences.
To achieve this we aim to develop incentive schemes that provide NGET and NGG with an appropriate balance of risk and reward which is in the interests of customers, who ultimately pay for the costs of system operation. The SO incentive schemes form part of our overall work to regulate monopolies effectively.