Ofgem scheme connecting more households to gas grid
Blog
- Rupika Madhura
- Publication date
- Industry sector
- Supply and Retail Market
If you would like to have gas for central heating and cooking this winter, but are not connected to the gas grid, you might be eligible for help.
Under an Ofgem scheme, gas distribution network companies are required to connect tens of thousands of vulnerable and fuel poor households to the gas grid.
This year we increased the target for the number of households companies must connect. We also changed the eligibility criteria to find out if you qualify for assistance from your local distribution network company and for information about how to apply.
Fuel poverty
Reducing the number of households that are in fuel poverty remains one of the most important energy challenges that we face in Great Britain. Governments – both national and devolved - have put in place a range of policies to tackle fuel poverty.
As the energy regulator it is important that we also do our bit. That’s why we introduced the Fuel Poor Network Extension Scheme in 2008.
It enables eligible households to switch to natural gas, where gas is the right solution for such consumers.
The type of energy that households use for heating and cooking can play a big part in determining whether a household is in fuel poverty or not.
Gas is cheaper than alternatives like electricity and heating oil, but not every household is connected to the gas network.
Getting connected to the grid and having access to gas can make a real difference in the quality of living standards for those in fuel poverty.
Fuel Poor Network Extension Scheme
Under the scheme, gas distribution network companies usually meet the full upfront cost of extending the gas grid for those who are eligible.
They recover this cost over a 40 year period from bills paid by households who benefit from the connection.
We decided to extend the scheme for the next price control period for gas distribution network companies, which began in 2013 and runs until 2021.
Since 2008, the scheme has connected over 70,000 households to the gas grid.
Higher targets and new eligibility criteria
We reviewed this scheme between August 2014 and September 2015 to make sure the scheme is in in line with government fuel poverty initiatives, so that those who need it most get help.
As a result of this review, we increased the number of connections that gas distribution companies must deliver by 31 March 2021 by almost 20 per cent.
Now, at least 90,000 households must be connected to the gas grid by this date, up from the previous target set in 2013 of 77,450. Companies which miss their targets have to pay a penalty.
We also changed the eligibility criteria after feedback from stakeholders including from fuel poor charities, local councils, Governments and network companies. The changes came into effect from 1 April 2016.