Modifications to Special Condition 3.21 of the gas transporter licence - Biomethane Distributed Entry Reinforcement

Details of outcome 

Following consultation, we have decided to modify Special Condition 3.21 (SpC 3.21) of the Gas Distribution Network (GDN) Gas Transporter Licence. The modifications implement consequential and targeted modifications that align the licence funding profiles with the policy intent in the recently updated Biomethane Connections Use-It-Or-Lose-It (UIOLI) Governance Document. We have modified the allowance table in SpC 3.21 to replace total GDN allowances with annual allowances for each corporate group. This will provide corporate groups with the flexibility they need to allocate their Biomethane Connections UIOLI allowance where demand is greatest across their networks. 

Respondents were generally supportive of the proposed changes, although some sought clarification on the wider implications of the modification. We have considered all responses and set out our conclusions in the decision document. 

Read the full outcome

Original consultation

Consultation description

We are consulting on proposed modifications to Special Condition 3.21 of the gas transporter licence. The changes would replace network-level Biomethane Connections UIOLI funding allocations with corporate-level allocations for Cadent and SGN.

The proposed modifications would implement changes recently made to the Biomethane Connections UIOLI governance document, providing greater flexibility to reallocate unused funding between networks within the same corporate group.

Who should respond

• gas distribution network operators
• the gas transmission network operator
• anyone with an interest in the RIIO-3 price control