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: 30th Sep 2011
  • Closed: 25th Nov 2011
  • Consultations and responses
  • 8 Associated documents
Ofgem's preliminary views regarding compliance with regulated third party access (rTPA) arrangements for Liquified Natural Gas (LNG) facilities in GB.

  • Published: 11th Aug 2011
  • Other
  • 1 Associated documents
Ofgem is requesting information regarding long-term gas supply contracts of shippers, suppliers, transmission and distribution companies with suppliers from non-European Union countries pursuant to EU Security of Gas Supply Regulation (No 994/2010).

  • Published: 3rd Nov 2010
  • Closed: 15th Dec 2010
  • Consultations and responses
  • 14 Associated documents
Ofgem will be responsible for ensuring general compliance with requirements of the Third Package pertaining to gas storage.

  • Published: 18th May 2010
  • Open letters and correspondence
  • 1 Associated documents
This document sets out Ofgem’s preliminary views on aspects of the Third Party Access regulatory regime for gas storage facilities in the GB market.

  • Published: 18th Aug 2008
  • Decisions
  • 1 Associated documents
Section 11 Direction for NGET's SO incentives 2008/09: Transmission Losses Revised Volume Target

  • Published: 11th Aug 2008
  • Closed: 8th Sep 2008
  • Consultations and responses
  • 3 Associated documents
This Notice is a re-issue of the Methane Incentives Notice and now contains an amended definition of 'compressors'.

  • Published: 17th Jul 2008
  • Decisions
  • 2 Associated documents
National Grid Electricity Transmission (NGET) is the System Operator (SO) for the electricity transmission system.

  • Published: 3rd Jul 2008
  • Closed: 31st Jul 2008
  • Consultations and responses
  • 2 Associated documents
Notice under Section 23 of Gas Act 1986 to modify NGG's transporter licence in order to implement external SO incentive scheme from 1 April 2008.

  • Published: 29th May 2008
  • Decisions
  • 1 Associated documents
Formal information request in respect of information to be provided to the Authority in relation to NGG's SO incentive scheme.

  • Published: 29th May 2008
  • Decisions
  • 1 Associated documents
Direction under Section 23 of Gas Act 1986 to modify NGG's transporter licence in order to remove the requirement for NGG to provide specific information to the Authority in respect of its SO incentive scheme under Special Condition C14.

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