Decision on derogation request from NGT in relation to its System Management Principles Statement for 2020/21

Decision
Publication date
Industry sector
Transmission Network
Licence type
Gas Transporter Licence

We write further to National Gas Transmission's (NGT) letter to Ofgem, dated 22 February 2023, requesting a derogation in respect of Special Condition 9.19.11(b) of NGT's Gas Transporter Licence (the Licence) in relation to compliance with the System Management Principles Statement (SMPS) for the Regulatory Years 2021-2022, 2022-2023 and 2023-2024. 

In that letter, NGT requested to replace the Independent Examiner's opinion with an Agreed Upon Procedures (AUP) report. This AUP report forms part of the Independent Examiner's statement that it has carried out an investigation into NGT's compliance with the SMPS, as required by Special Condition 9.19.11(a).

In our previous letter dated 5 October 2023, we approved the use of the AUP report and granted the requested derogation for the Regulatory Years 2021-2022, 2022-2023 and 2023-2024 only. This letter sets out our further approval of the derogation for Regulatory Year 2020-2021. The direction, which appears annexed to this letter, will give effect to this derogation (subject to the conditions specified therein).