Gas Security of Supply Significant Code Review - Conclusions

Licence modification

We began our Significant Code Review (SCR) into gas security of supply in January 2011 in response to our concerns with the gas emergency arrangements.

In these conclusions, we confirm our decision to reform cash-out arrangements in an emergency. We think our cash-out reforms are beneficial to consumers, market-based and help reduce the likelihood, severity and/or duration of a Gas Deficit Emergency (GDE). We also confirm our decision to proceed with development of a centralised demand side response mechanism and to place a licence obligation on National Grid to develop it. We think this has potential benefits for consumers and could further reduce the likelihood, severity and/or duration of a GDE.

Alongside this document, we are publishing a direction to implement the changes to the Uniform Network Code, and modification notices to change the gas shipper, supply and transporter licences.

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