National Grid’s intended sale of its gas distribution networks: Decisions on statutory consultations under section 8AA and section 23 of the Gas Act

Publication date
30th September 2016
Information types
Policy areas

On 10 November 2015 National Grid plc (NG) announced the commencement of a process for the intended sale of its majority shares in its gas distribution network (GDN) business. The first stage of this process is for National Grid Gas (NGG) to transfer its gas distribution transportation assets and licence to a subsidiary company of NG (this process is referred to as a hive across). The Authority needs to provide consent to these transfers.

On 23 June 2016 NGG submitted a formal notice to us for consent to transfer its gas distribution licence under section 8AA of the Gas Act 1986 (the Act). We therefore issued two statutory consultations on 8 July 2016 to seek stakeholder views before deciding whether to:

  • grant consent to the transfer of the NGG(DN) gas transporter licence to NGGDL (NG’s new subsidiary) subject to modifications to the same licence under section 8AA of the Act, and
  • make modifications under section 23 of the Act to the gas transporter licence held by NGG in respect of the national transmission system (NGG(NTS).

This document summarises the response received and sets out our decision to consent to the NGG(DN) licence transfer (subject to modifications) to NGGD and make the modifications to the NGG(NTS) licence.