National Grid’s intended sale of its Gas Distribution Networks - statutory consultations under section 8AA and section 23 of the Gas Act 1986

Publication date
8th July 2016
Closing date
9th September 2016
Policy areas
Status

On 10 November 2015 National Grid plc (NG) announced the commencement of a process for the intended sale of a majority stake in its gas distribution network (GDN) business. The first stage of this process is for National Grid Gas (NGG) to transfer its gas distribution assets and licence to a wholly owned subsidiary company of NG, often referred to as a hive across.

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 are therefore commencing two statutory consultations 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) and associatedsubject to modifications to the same licence under section 8AA of the Act, and
  • direct 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).

These consultations follow on from our decision on 6 July, following careful review of stakeholder feedback, to grant conditional consent to NGG to transfer its assets to the new subsidiary (to take place on or after 1 October 2016).

Please submit your responses to NGGD.Separation@ofgem.gov.uk by 9 September 2016.