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: 21st Mar 2007
  • Closed: 18th Apr 2007
  • Consultations and responses
  • 4 Associated documents
This document sets out our final proposals for an SO incentive scheme for NGG, including a statutory licence modification consultation.

  • Published: 19th Feb 2007
  • Closed: 19th Feb 2007
  • Consultations and responses
  • 1 Associated documents

  • Published: 25th Jan 2007
  • Closed: 25th Jan 2007
  • Consultations and responses
  • 1 Associated documents

  • Published: 21st Dec 2006
  • Open letters and correspondence
  • 1 Associated documents
National Grid System Operator Quality of Information Incentives: November 2006 update.

  • Published: 5th Dec 2006
  • Consultations and responses
  • 11 Associated documents
This document and the supplementary appendices document set out our initial proposals for SO incentive schemes for NGET and NGG to apply from 1 April 2007.

  • Published: 27th Nov 2006
  • Consultations and responses
  • 12 Associated documents
Review of Standard Licence Conditions 14 and 15 of the Electricity Generation Licence.

  • Published: 2nd Oct 2006
  • Consultations and responses
  • 16 Associated documents
NGET and NGG's forecasts, and feedback to this consultation, will assist us in developing our initial proposals for incentive schemes.

  • Published: 4th Sep 2006
  • Decisions
  • 1 Associated documents

  • Published: 3rd Aug 2006
  • Other
  • 1 Associated documents
introduce provisions relating to the quantification and treatment of Demand Control into the BSC. Ofgem issued this decision and notice letter on 3 August 2006, rejecting P199.