Modification of National Grid Gas plc’s National Transmission System gas transporter licence to activate back stop meter provider of last resort obligations

Publication date
30th September 2016
Information types
Policy areas

On 6 July 2016, we issued a direction to modify NGG (NTS)’s gas transporter licence to add inactive back stop meter of last resort (BMPOLR) obligations to it, together with a mechanism to activate them. This decision followed our statutory consultation letter dated 3 May 2016, which outlined our proposed changes and reasons for proposing these changes. The BMPOLR obligations were inserted in order to ensure that NGG could retain the BMPOLR obligation in the event that the Authority consented to the transfer of NGG’s distribution licence, in advance of NGG selling a majority stake in its distribution business.

Today, we have consented to the transfer of NGG’s distribution licence under s. 8AA of the Gas Act 1986. We are therefore also issuing a direction which activates the BMPOLR obligations in NGG (NTS)’s gas transporter licence.