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 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.

  • Published: 6th Jul 2007
  • Decisions
  • 1 Associated documents
This document sets out Ofgem's minded to decision on UNC MOD 104 which relates to access to stock information at LNG storage facilities.

  • Published: 6th Jun 2007
  • Decisions
  • 1 Associated documents
This documents direct the modification of Standard Conditions D3 and D4 of the Electricty Generating Licence and outlines the reasons for the changes.

  • Published: 18th May 2007
  • Decisions
  • 3 Associated documents
During 2007 we will be undertaking a review of the role and functions of the system operator (SO) in both gas and electricity, including the existing SO incentive schemes that apply to electricity and gas transmission in Great Britain.

  • Published: 3rd May 2007
  • Decisions
  • 1 Associated documents
Direction to Modify Standard Licence Conditions 14 and 15 of the Electricity Generation Licence

  • Published: 3rd May 2007
  • Closed: 31st May 2007
  • Consultations and responses
  • 1 Associated documents
Notice of Modification of the Standard Conditions of Electricity Generation Licence under section 11a of the Electricity Act 1989

  • Published: 30th Apr 2007
  • Decisions
  • 6 Associated documents
This letter sets out Ofgem's final view on GLNG’s application for an exemption from regulated third party access (rTPA) requirements for Grain 3.

  • Published: 19th Apr 2007
  • Decisions
  • 1 Associated documents
Notice of the reasons for the decision to modify the special Conditions of national grid gas plc's gas transporter licence In respect of its national transmission system under section 38a of the gas act 1986

  • Published: 29th Mar 2007
  • Decisions
  • 1 Associated documents
Modification of the special conditions of National Grid Electricity Transmission Plc electricity transmission licence under section 11 of the Electricity Act 1989

  • Published: 27th Mar 2007
  • Closed: 24th Apr 2007
  • Consultations and responses
  • 5 Associated documents
Statutory consultation on the modification of Standard Licence Conditions 14 and 15 of the Electricity Generation Licence.

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