We encourage competition in areas where this can make a positive difference for customers. The provision of new and modified connections to the gas networks is a competitive area.
Utility Infrastructure Providers (UIPs) and licensed Independent Gas Transporters (IGTs) can compete with Gas Distribution Networks (GDNs) to complete some connection activities.
Historically, competition in the gas connections market is stronger than in the electricity connections market. Over half of new and modified gas connections are carried out by non GDNs.
GDNs and IGTs must meet a set of service levels, called Guaranteed Standards, when providing connections. Failure to meet these standards for any individual connection can result in the connecting customer being eligible for a payment for inconvenience caused. Further information can be found on the Connections Guaranteed Standards page.
Ofgem does not approve the specific prices that GDNs and IGTs charge for connections. However we approve the methodology that they use to calculate these charges – and they must publish this methodology on their website.
From 2004 to 2012 we published an annual Connections Industry Review (CIR) of the gas and electricity connections sectors to assess the nature and level of competition. The publications arising from these reviews can now be found on the National Archives website.