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: 12th May 2008
  • Open letters and correspondence
  • 1 Associated documents
Open letter to interested parties setting out our intentions for the process, scope and timetable for the review of the external gas and electricity System Operator Incentive Schemes to be implemented from April 2009 onwards.

  • Published: 29th Apr 2008
  • Closed: 27th May 2008
  • Consultations and responses
  • 1 Associated documents
Covering letter and Notice under Section 23 of Gas Act 1986 to modify NGG's transporter licence in order to remove the requirement for NGG to provide information in relation to its external SO Incentives Scheme under special condition C14 of its...

  • Published: 14th Apr 2008
  • Decisions
  • 1 Associated documents
Section 23 Direction to Modify NGG's transporter licence in respect of SO Incentives from 1 April 2008

  • Published: 2nd Apr 2008
  • Open letters and correspondence
  • 1 Associated documents
Information request to NGET - losses08.

  • Published: 2nd Apr 2008
  • Open letters and correspondence
  • 1 Associated documents
Information Provision for 2008-09 SO Incentive Scheme: formal information request under paragraph 14 of standard condition C16 of NGET's transmission licence.

  • Published: 31st Mar 2008
  • Open letters and correspondence
  • 1 Associated documents

  • Published: 31st Mar 2008
  • Open letters and correspondence
  • 1 Associated documents

  • Published: 13th Mar 2008
  • Closed: 10th Apr 2008
  • Consultations and responses
  • 3 Associated documents
Letter on revised Section 23 Notice for National Grid Gas’s SO incentives from 1 April 2008, subsidiary document is statutory licence modification consultation.

  • Published: 27th Feb 2008
  • Closed: 26th Mar 2008
  • Consultations and responses
  • 3 Associated documents
Final proposals for SO incentives scheme for NGET and NGG to apply from April 2008, subsidiary documents are statutory licence modification consultations.

  • Published: 20th Dec 2007
  • Decisions
  • 1 Associated documents
Notice under Section 23 of the Gas Act 1986 (re Market Information Provision Initiative).

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