We own and operate the gas National Transmission System (NTS) in Great Britain, with day-to-day responsibility for balancing supply and demand. Our network comprises approximately* 7,660 kilometres (4,760 miles) of high-pressure pipe and 618 above-ground installations.
* AR 2016/17 figures
Our licence is established under the Gas Act 1986. It requires us to develop, maintain, and operate economic and efficient networks and to facilitate competition in the supply of gas in Great Britain (GB). They also give us statutory powers, including the right to bury our pipes under public highways and the ability to use compulsory powers to purchase land so we can conduct our business.
The UK Gas Transmission (UK GT) business operates under one price controls, covering our role as transmission owner (TO) and system operator (SO).
In addition to the price controls, there is also a tariff cap price control applied to certain elements of domestic metering and daily meter reading activities carried out by National Grid Metering.
Our regulatory framework is called RIIO (revenue = incentives + innovation + outputs) and lasts for eight years. The current period runs through April 2021. The building blocks of the RIIO price control are broadly similar to the historical price controls used in the UK, but with some significant differences in the mechanics of the calculations.
European institutions and associations
We are a member or participant of the following institutions and associations that meet on European issues.
|European Network of Transmission System|
Operators for Gas (ENTSO-G)
|The European Network of Transmission System Operators for Gas (ENTSOG) represents all gas TSOs in the EU and other countries connected to their networks. Their aim is to promote the completion of internal European Gas market. ENTSOG plays a role in the drafting of new European legislation.|
|Gas Infrastructure Europe (GIE)||Gas infrastructure Europe (GIE) represents 67 companies from 25 countries that operate gas infrastructure across Europe. GIE aims to find market-based solutions which best meets the interests of its members.|
|Energy Network Associations (ENA)||The Energy Networks Association (ENA) represents the Electricity and gas transmission and distribution network operators in the UK and Ireland. Their goal is to promote safe, reliable, efficient and sustainable networks.|
|Gas Regional Initiative (GRI)||The Electricity and Gas Regional Initiatives are European-wide initiatives intended as a concrete contribution to the integration of national markets by facilitating the creation of regional energy markets, in electricity and gas respectively. Such regional market integration is a practical and achievable way of delivering step-wise progress towards a competitive single European market for electricity and gas, in conjunction with the Third Energy Package obligations. With respect to GRI, the United Kingdom is part of the North West Region which also includes the Netherlands, Belgium, France, Ireland, Northern Ireland, Germany, Denmark, Sweden and Norway (observer).|
Significant change is underway in the UK energy system, often described by the three key trends of decarbonisation, decentralisation, and digitalisation. The UK’s commitment this year to net zero greenhouse gas emissions by 2050 has focused minds on the task in hand, and at National Grid, we see net zero as both a huge challenge and opportunity.
Digital – the transformation of physical processes to virtual – is a critical part of the pathway to net zero. It provides an opportunity for the energy sector to bring about cost savings for consumers, improve customer experience, enable greater whole system coordination and transparency, and accelerate the development and deployment of innovative technologies.
Our stakeholders have increasingly told us how important Digital is to them, and work carried out across the industry has helped to crystallise and prioritise what needs to get done. Our Digitalisation Strategy outlines where we are today, our strategy for the future and our priorities for RIIO T2. It also invites stakeholders to engage with us on our approach to digitalisation.