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IGT regulation 

In 1995 the Gas Act 1986 was amended to allow for the creation of Independent Gas Transporters (IGTs), which develop, operate and maintain local gas transportation networks.

IGT networks are directly connected to the Gas Distribution Network (GDN) via a Connected System Entry Point (CSEP) or indirectly to the GDN via another IGT. Although domestic, industrial and commercial premises are connected to IGT networks, the new housing market constitutes the largest share of the IGT market. The IGTs also serve domestic infill premises. 

It is estimated that the number of consumers connected to an IGT network is approximately 870,000, and this is projected to reach the one million mark within a few years.  There are nine groups holding an IGT licence, although only five of these groups own and operate transportation assets. 

In terms of IGT policy undertaken by the Gas Distribution policy team, Relative Price Control (RPC) was introduced to regulate IGT transportation charges in January 2004. RPC requires that IGT charges to all new customers should be capped at a level broadly consistent with the GDN equivalent charge. For those sites that pre-date RPC (legacy sites), IGTs will continue to charge under the legacy arrangements until they migrate into RPC.

Ofgem monitors the charges of both types of arrangement on a periodic basis to ensure that IGTs are levying charges that fully comply with both the IGT licence and any legacy charging approvals issued by Ofgem.  In March 2006, financial ring-fencing of IGTs was implemented to protect the interests of consumers by safeguarding the financial stability of IGTs. 



DateTitle (Click for more document information)
31/10/2008Publication of the changes in the relevant Gas Transporters’ single supply point charge and in the Retail Price Index effective from 1 January 2009 pursuant to Special Condition 1 of the Independent Gas Transporters’ licences
- (Reference number: 148/08)
30/10/2007264/07 - Revised publication of the changes in the relevant Gas Transporters' single supply point charge and in the Retail Price Index effective from 1st January 2008 pursuant to Special Condition 1 of the Independent Gas Transporters' licenses
- (Reference number: 264/07)
14/08/2007211/07 - Modification of licence of Fulcrum Pipelines Ltd
- (Reference number: 211/07)
04/07/2007168/07 - Notice under section 23 of the Gas Act 1986 - Fulcrum Pipelines Ltd
- (Reference number: 168/07)
30/03/200762/07 - Decision letter on the regulation of Independant Gas Transporter (IGT) license holders as affiliates of existing Licence
26/02/200733/07- Regulation of Independent Gas Transporter (IGT) licence holders as affiliates of existing licensees
- (Reference number: 33/07)
05/01/2007Extension to Global Utility Connections (Gas) Ltd's derogation from complying with financial ring fencing conditions
30/10/2006Publication of the changes in the relevant Gas Transporters single supply point charge and in the Retail Price Index effective from 1 January 2007 pursuant to Special Condition 1 of the Independent Gas Transporters licences
- (Reference number: 190/06)
02/08/2006Decision on changes to reasonable profit tests applied under SLCs 4 and 4a of the GT licence
- (Reference number: 132/06)
18/05/2006Changes to reasonable profit tests applied under SLCs 4 'quot;amp; 4A of the GT Licence
- (Reference number: 86/06)
16/03/2006Statutory notice pursuant to section 23 of the Gas Act proposing to modify licence conditions 43, 44, 46 and 47
23/02/2006Modification of the gas transporter licence granted to British Gas Pipelines Limited pursuant to Section 23(1)(a) of the Gas Act 1986
- (Reference number: 33/06)
23/02/2006Modification of the gas transporter licence granted to Global Utility Connections Limited pursuant to Section 23(1)(a) of the Gas Act 1986
- (Reference number: 34/06)
24/01/2006Section 23 Notice - Financial ring fencing of IGTs
27/10/2005Notice under Section 23(3) of the Gas Act 1986 (Global Utility Connections Limited)
- (Reference number: 232/05)
27/10/2005Notice under Section 23(3) of the Gas Act 1986 (British Gas Pipelines Limited)
- (Reference number: 233/05)
26/10/2005Publication of the changes in the relevant gas transporter's single supply point charge and in the retail price index persuant to special condition 1 of the independant gas transporters licences
- (Reference number: 231/05)
28/09/2005Financial ring fencing for new and existing independent gas transporters - Final proposals
- (Reference number: 209/05)
15/03/2005Guidance for calculation of the RPC price cap
28/02/2005Calculation of the Connected System Exit Point (CSEP) charge under Relative Price Control (RPC) for IGTs
08/12/2004Publication of the dates for migration of IGT legacy properties into RPC
15/11/2004Further guidance on reasonable profit tests under SLC 4
08/11/2004Financial ring-fencing for new and existing independent gas transporters - Initial proposals
- (Reference number: 250/04)
26/10/2004Publication of the changes in Transco's single supply point charge and in the Retail Price Index persuant to Special Condition 1 of the Independant Gas Transporters' Licence
18/08/2004Modification of the licences of British Gas Pipeline limited
- (Reference number: 207/04)
18/08/2004Global Utility Connections Limited
- (Reference number: 208/04)
13/07/2004Notice under section 23(3) of the Gas Act 1986 - British Gas Pipelines Limited
- (Reference number: 158/04)
13/07/2004Notice under section 23(3) of the Gas Act 1986 - Global Utility Connections Limited
- (Reference number: 159/04)
13/01/2004Guidance for implementation of the RPC price-cap
30/09/2003Consultation on the Modification of the Gas Transporter Standard Licence Conditions and introduction of relative price control condition for independent gas transporters
- (Reference number: 112/03)
28/07/2003Future arrangements for domestic infill developments
04/07/2003The Regulation of Independent Gas Transporter Charging: Final Proposals
- (Reference number: 64/03)
18/12/2002The Regulation of Independent Gas Transporter charging. Draft Proposals
- (Reference number: 87/02)
29/11/2002Definition of reasonable profit for Condition 4 transportation charges
16/05/2002The regulation of Independent Gas Transporter charging
- (Reference number: 37/02)
22/04/2002Recovery of payments to developers through transportation charges
20/02/2002Independent Gas Transporter Charges and Cost of Capital
- (Reference number: 20/02)
19/02/2002Overall standards of performance for gas transportation Consultation on Draft Determinations and associated modifications to the GT standard licence conditions
- (Reference number: 15/02)
23/01/2002Guaranteed standards of performance for gas transporters
- (Reference number: 03/02)
24/12/2001Acceptance of Standard Condition 4C Methodologies
18/12/2001Guaranteed and overall standards for independent Gas Transporters Final proposals
- (Reference number: 79/01)
19/10/2001Guaranteed and Overall Standards for Independent Gas Transporters A Consultation Document
- (Reference number: 63/01)
09/05/2001Review of competition in gas and electricity connections