How we are regulated

Our licences are established under the Gas Act 1986 and Electricity Act 1989. They require us to develop, maintain, and operate economic and efficient networks and to facilitate competition in the supply of gas and electricity in Great Britain (GB). They also give us statutory powers, including the right to bury our pipes or cables under public highways and the ability to use compulsory powers to purchase land so we can conduct our business.

Electricity

Electricity industry compliance

Documents that we must produce to comply with our electricity licence requirements to separate parts of the business.

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Electricity system operator incentives

Designed to deliver financial benefits to the industry and consumers by reducing the cost and minimising the risks of balancing the system.

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ESO and ETO business separation

We will set up a new, legally separate company to carry out our electricity system operator (ESO) function within the National Grid Group.

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Market Operation Data Interface System (MODIS)

Latest details of the development of the Market Operation Data Interface System (MODIS).

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LIO for EIC codes

We are the electricity Local Issuing Office (LIO) for GB and are authorised to issue International and Local EIC Codes. Xoserve has ownership of the gas LIO for GB.  

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European network codes

European network codes (ENC) cover grid connections, markets, and system operation, providing a sustainable, secure, and competitive electricity market across Europe.

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Gas

Gas industry compliance

Documents that we must produce to comply with our gas licence requirements to separate parts of the business, as well as gas procurement and system management documents.

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Gas system operator incentives

We are subject to a number of performance incentives to maintain and improve our daily operational efficiency and are subject to renegotiation at set intervals.

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EU network codes implementation

Implementing EU network codes will be one of the biggest challenges over the next decade. We are dedicated to providing greater information and transparency.

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Gas transparency requirements

Details on our gas transmission network and services according to legal requirements from Chapter 3 of Annex I of Regulation (EC) No 715/2009 and EU TAR NC.

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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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The UK Electricity Transmission (UK ET) and the UK Gas Transmission (UK GT) businesses operate under separate price controls. These comprise two for our UK ET operations, one covering our role as transmission owner (TO) and the other for our role as system operator (SO); two for our UK GT operations, again one as TO and one as 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.

Electricity

InstitutionOverview
European Network of Transmission System
Operators for Electricity (ENTSO-E)

The European Network of Transmission System Operators for Electricity (ENTSO-E) represents all electric TSOs in the EU and other countries connected to their networks.

Their aim is to promote the completion of pan-European electricity market. ENTSO-E plays a role in the drafting of new European legislation.

CORESOCORESO is an independent company that aims to coordinate the operations of European electricity system operators in order to increase system security, integration of renewable energy and the development of the European Electricity market.
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.
The North Seas Countries' Offshore Grid
Initiative (NSCOGI)
The North Seas Countries' Offshore Grid initiative (NSCOGI) is the body responsible for the evaluation and facilitatation of a possible coordinated offshore grid that maximises the efficient and economic use of renewable sources and infrastructure
investments.
Friends of the SupergridThe Friends of the Supergrid (FOSG) is a group of companies and organisations which have a mutual interest in promoting and influencing the policy and regulatory framework required to enable large-scale interconnection in Europe. With a special insight into the technology needed to create Supergrid the Friends will be empowered to build the know-how to deliver it in practice.
Renewable Grid InitiativeThe Renewables-Grid-Initiative promotes 100% integration of electricity produced from renewable energy sources. It advocates national and EU authorities to strive for an efficient, sustainable, clean and socially accepted development of the European network infrastructure for both decentralised and large-scale renewable energies.

Gas

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).