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: 7th Dec 2007
  • Reports and plans
  • 1 Associated documents
Today National Grid published its initial proposals for the incentives schemes to apply from 1 April 2008. This document refers to Grid's initial proposals and describes the subsequent process for the development by Ofgem of its final proposals.

  • Published: 2nd Nov 2007
  • Agendas, minutes and presentations
  • 5 Associated documents

  • Published: 1st Nov 2007
  • Other
  • 1 Associated documents
The letter outlines the next steps in the System Operator Review and important process issues relating to the scheme which will apply from 1 April 2008.

  • Published: 25th Oct 2007
  • Decisions
  • 1 Associated documents
Final Decision and exemption order for SSE Hornsea Ltd's application for an exemption from section 19B of the Gas Act 1986 for their share of the proposed medium-range storage facility at Aldbrough

  • Published: 25th Oct 2007
  • Decisions
  • 1 Associated documents
Final Decision and exemption order for Statoil UK Ltd's application for an exemption from Section 19B of the Gas Act 1986 for their share in the proposed medium-range storage facility at Aldbrough

  • Published: 15th Oct 2007
  • Closed: 12th Nov 2007
  • Consultations and responses
  • 2 Associated documents
The licence modification has been proposed in order to ensure that the licence is consistent with NGG’s implementation of the Market Information Provision Initiative (MIPI).

  • Published: 19th Sep 2007
  • Decisions
  • 1 Associated documents
The letter sets out our role in monitoring the effectiveness of anti-hoarding arrangements at IOG and how we will respond to any potential concerns regarding the use of the terminal.

  • Published: 8th Aug 2007
  • Closed: 28th Sep 2007
  • Consultations and responses
  • 13 Associated documents
This document and the supplementary appendixes set out our initial thoughts on the review of gas and electricity system operator functions and incentives.

  • Published: 12th Jul 2007
  • Decisions
  • 1 Associated documents
This decision sets out Ofgem's reasons for granting an exemption to BritNed from the requirements to offer third party access to a proposed new electricity interconnector between the GB and Dutch markets.

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