National Grid sale of Gas Distribution Network business – consultation on regulatory aspects

Publication date
3rd May 2016
Closing date
31st May 2016
Policy areas
Status

On 10 November 2015, National Grid announced its intention to sell a majority stake in its gas distribution business, currently owned by National Grid Gas (‘NGG’). This business currently serves 10.9 million gas consumers in Great Britain.

In February 2016 we issued an open letter on this matter stating we would conduct consultations in due course.

This consultation invites views on the regulatory issues arising from the potential transfer of gas distribution assets and licence from NGG to a wholly owned subsidiary within National Grid to ensure that any decision we make protects the interests of existing and future gas consumers.

In addition to this informal consultation we are also issuing a statutory consultation on proposed new standard special conditions and special conditions in NGG’s National Transmission System (NTS) gas transporter licence. The statutory consultation is on the proposed modifications to provide us with the power to maintain certain relating to the backstop meter provider of last resort (BMPOLR) obligations on NGG in the event that the transfer of assets and licence were to occur.

Please submit your responses to NGGD.Separation@ofgem.gov.uk by 31 May 2016.