Market efficiency, review and reform

National Grid Gas plc is the system operator for Britain’s gas National Transmission System (NTS). It is responsible for maintaining residual balancing of the system so that demand and supplies are balanced and the system can be operated safely.

It is important that National Grid has appropriate commercial incentives to operate the gas NTS in an economic and efficient manner, as they are required to do under the terms of their licence as the System Operator.

To achieve this we work to develop incentive schemes that provide National Grid with an appropriate balance of risk and reward. At the same time, we also try to protect the interests of present and future consumers, who ultimately pay for the costs of system operation.

Cash out arrangements and the System Operator incentive schemes form part of our overall work to regulate the NTS monopolies and to work towards maintaining market efficiency.

We monitor developments in the gas market and facilitating changes to the market arrangements where it is economic and efficient to do so. 

We also undertake work to protect customers’ interests in respect of securing Britain’s gas supplies, as well as monitoring and investigating activities which may harm competition.

Publications and updates

  • Published: 10th Mar 2017
  • Decisions
  • 2 Associated documents
In this letter, we approve Centrica Storage Limited’s application to reduce Minimum Rough Capacity and Additional Space to zero for the 2017/18 Storage Year.

  • Published: 15th Dec 2016
  • Decisions
  • 2 Associated documents
In this letter, we direct CSL’s consultation on their application to reduce MRC and AS to be carried out as outlined in the proposal submitted on 12 December 2016.

  • Published: 3rd Aug 2016
  • Reports & plans
  • 1 Associated documents
Ofgem's annual assessment of wholesale energy markets: An overview market conditions and how they compare to previous trends.

  • Published: 15th Jul 2016
  • Open letters & correspondence
  • 1 Associated documents
This letter is our response to National Grid Gas plc (NGG)’s letter to Ofgem from March 2016 regarding the Gas Market Operator (On-the-day Commodity Market (OCM)) arrangements.

  • Published: 3rd Nov 2015
  • Open letters & correspondence
  • 1 Associated documents
This letter accompanies a formal Notice under Section 34A of the Gas Act requiring gas shippers to produce the information specified in the Notice.

  • Published: 16th Oct 2015
  • Decisions
  • 2 Associated documents
The Authority's final decision from the review of Interconnector (UK) Limited's ownership unbundling certification in accordance with section 8K of the Gas Act 1986

  • Published: 9th Sep 2015
  • Reports & plans
  • 1 Associated documents
Ofgem's annual assessment of the gas and electricity wholesale markets. It gives an overview of how market conditions compare to previous trends and other similar markets.

  • Published: 12th Jun 2015
  • Open letters & correspondence
  • 1 Associated documents
We have written to National Grid to encourage them to explore the gas market operator arrangements. We've also published this letter.

  • Published: 25th Nov 2014
  • Decisions
  • 1 Associated documents
After due consideration, we have decided to approve Centrica Storage's proposals to modify the Storage Services Contract (SSC) and the V store, I store and 30 day storage contracts.

  • Published: 28th Oct 2014
  • Open letters & correspondence
  • 1 Associated documents
This letter accompanies a formal Notice under Section 34A of the Gas Act requiring gas shippers to produce the information specified in the Notice.

Pages