Gas System Operator incentives review 2015/18: Initial proposals

System Operator (SO) incentive schemes are designed to encourage National Grid Gas (NGG) to operate the gas transmission systems in an efficient and economic manner, and to effectively manage the associated costs. We develop incentives through extensive consultation with the SO and other stakeholders, in order to develop a fair and efficient set of incentives.

In this consultation we are seeking views on our initial proposals on the three gas SO incentives which are due to expire. These are:

• the day-minus-two (D-2) to day-minus-five (D-5) demand forecasting incentive;
• the maintenance incentive; and
• the greenhouse gas (GHG) emissions incentive.

The demand forecasting and maintenance incentives expire on 31 March 2015 while the GHG emissions incentive expires on 31 March 2016. We are proposing to extend all three incentives to 31 March 2018.