Ofgem has issued a statutory consultation on proposed new standard special conditions (SSC) and special conditions (SC) in National Grid Gas plc (NGG)’s National Transmission System (NTS) gas transporter licence.
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 NG to transfer its gas distribution assets and licence to a wholly owned subsidiary company in preparation for a majority share sale, often referred to as a hive across.
We are consulting on the proposed modification to NGG’s NTS gas transporter licence to provide us with the power to maintain certain obligations on NGG in the event that the transfer of assets and licence were to occur. These proposed changes are merely preparatory, in the event that NG receives the relevant consents required to transfer NGG’s gas distribution assets and licence.
The relevant obligations would ensure NGG remains the Backstop Meter Provider of Last Resort (BMPOLR), an obligation which it currently has through its distribution licence.
Ofgem has also issued a wider informal consultation seeking stakeholder views on broader issues relating to the sale preparation, including on whether the BMPOLR obligation should reside in NGG’s transmission licence or should remain in the distribution licence.
Please submit your responses to NGGD.Separation@ofgem.gov.uk by 31 May 2016.