How we're regulated

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.

EU gas regulatory change

Part of the wider EU Gas Regulatory Change Programme. The changes proposed reflect the amendments to the primary legislation in the CAM and TAR network codes.

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RIIO regulatory framework

Ofgem’s regulatory framework promoting incentives for investment and innovation in sustainable energy at the lowest cost to consumers.

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The UK Gas Transmission (UK GT) business operates under two separate price controls, one covering our role as transmission owner (TO) and the other for our role as system operator (SO). While each of the price controls may have differing terms, they are based on a consistent regulatory framework.

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.

RIIO price controls

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.

InstitutionOverview
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).