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: 14th Jul 2006
  • Consultations and responses
  • 6 Associated documents
winter given National Grid Gas' (NGG) assessment that supplies this winter may be tight.NGG as system operator (SO) provides forecasts of gas demand and key operationaldata on the gas market on its website.

  • Published: 26th May 2006
  • Consultations and responses
  • 10 Associated documents

  • Published: 25th Apr 2006
  • Other
  • 4 Associated documents
See the National Grid Electricity System Operator Incentive.

  • Published: 28th Feb 2006
  • Closed: 28th Mar 2006
  • Consultations and responses
  • 1 Associated documents
National Grid Electricity Transmission System Operator Incentive Schemes 2006-2007

  • Published: 22nd Dec 2005
  • Consultations and responses
  • 15 Associated documents

  • Published: 8th Feb 2005
  • Decisions
  • 1 Associated documents
Decision on Energy Merchants Gas Storage (UK) Limited for an exemption under section 19A of the Gas Act 1986 from section 19B of the Gas Act 1986.

  • Published: 29th Nov 2004
  • Decisions
  • 1 Associated documents
Application by South Hook LNG Terminal Company Ltd (SHTCL) under section 19C of the Gas Act 1986 for an exemption from section 19D of the Gas Act 1986.