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: 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 and 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: 8th Jul 2014
  • Decisions
  • 1 Associated documents
Decision for pricing benchmarks in gas and electricity markets a call for evidence.

  • Published: 19th Nov 2013
  • Open letters and 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.  This information includes details of all gas supply contracts which have a duration of more than one year...

  • Published: 29th Jul 2013
  • Agendas, minutes and presentations
  • 1 Associated documents
Minutes from the June 2013 meeting of the Sustainable Development Advisory Group.

  • Published: 6th Jun 2013
  • Closed: 31st Jul 2013
  • Consultations and responses
  • 22 Associated documents
Ofgem is seeking stakeholder views on how they use and contribute to price benchmarks, and whether they feel current arrangements are fit for purpose or think that further action is necessary.

  • Published: 5th Feb 2013
  • Open letters and correspondence
  • 1 Associated documents
See our letter confirming the designation of Endex Gas Spot as the operator of the gas balancing market.

  • Published: 13th Apr 2012
  • Decisions
  • 1 Associated documents
The document set out the regulatory framework applicable to Liquefied Natural Gas import facilities operating in Great Britain.

  • Published: 1st Feb 2012
  • Decisions
  • 2 Associated documents
Decision in relation to NGG’s System Operator Incentives to apply from 1 April 2012.

  • Published: 5th Dec 2011
  • Decisions
  • 2 Associated documents
This document sets out our guidance on compliance with the requirements of the 3rd Package pertaining to gas storage, and summarises Ofgem’s new powers to monitor and enforce compliance. This guidance document will apply until such time as it is revised.

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