The quality of service arrangements for Gas Distribution Networks (GDNs) provide important protection to consumers and are a key balance to price control incentives to reduce costs.
Ofgem uses incentive regulation to encourage GDNs to reduce costs and lower charges to consumers. However, to balance incentives to reduce GDNs’ costs, we also specify a number of quality of service outputs and standards which GDNs must deliver, to ensure they provide an appropriate level of service to consumers.
The current quality of service and outputs arrangements have been implemented through a number of different frameworks including:
- Guaranteed Standards of Performance (GSOPs);
- Overall Standards of Performance (OSOPs);
- Third party & water ingress arrangements; and
- Output reporting
We are currently reviewing the quality of service arrangements for GDNs as part of the gas distribution price control review for 2008-13.