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System operator incentives

We are the system operator (SO) of the gas transmission network. To imitate the commercial pressures that would normally apply to a company in a fully competitive market, we are subject to a number of performance incentives. These SO performance incentives aim to maintain and improve our daily operational efficiency and are subject to renegotiation at set intervals.

Two National Grid workers inside a grey and white structure

About gas incentives

The SO incentive framework was implemented by Ofgem in 2013/14 and will last for eight years. Under this framework, we have a set of outputs that we have agreed with our stakeholders. We deliver these outputs in return for an allowance that we have agreed with the regulator Ofgem. You can find a general overview of gas system operator Incentives in our Supporting Information document. Documents relating to previous consultations and schemes can be found under the Data and documents header below. 

Current SO incentives

These are the areas where incentives are in place:

Incentive development

Development

Most of the incentive schemes agreed for the RIIO-T1 price control period (2013-2021) were set for an eight year period but some were set for a shorter time. Where new incentives were introduced or where incentives had been substantially changed, the incentives (known as Shallow Incentives) were set for a shorter period to enable the effectiveness to be assessed before committing to longer timescales. All of the incentives will be due for review as part of the RIIO-T2 price control period, which will commence in 2021. The table in the next tab lists the incentives and their review date.

Review dates

Scheme

Expiration date

Scope

Transportation Support ServicesOctober 2018Scheme expires 10/18

Demand forecasting D-1 incentive

01 April 2021

Scheme expires 31/03/21

Demand forecasting D-2 to D-5 incentive01 April 2021Scheme expires 31/03/21
Greenhouse gas incentive01 April 2021Scheme expires 31/03/21
Maintenance01 April 2021Scheme expires 31/03/21

NTS shrinkage

01 April 2021

Scheme expires 31/03/21

Residual balancing

01 April 2021

Scheme expires 31/03/21

Operating margins

01 April 2021

Scheme expires 31/03/21

Unaccounted for gas

01 April 2021

Scheme expires 31/03/21

Information provision

01 April 2021

Scheme expires 31/03/21

Shallow Incentives Review (2017)

Download the following documents to find out more.

Shallow Incentives Review: Review of the maintenance, demand forecasting for two-to-five days ahead, and greenhouse gas emissions schemes. (June 2017)

Shallow Incentives Proposal:  (August 2017)

Shallow Incentives Conclusions Report: (October 2017)

Operating Margins Incentive Proposal (2017)

Download the following documents to find out more.

Operating Margins Incentive Proposal Consultation on the potential re-introduction of a financial incentive for Operating Margin's costs designed to help ensure that the costs customers pay for Operating Margins are kept to a minimum. (August 2017)

Operating Margins Incentive Consultation Outcome (November 2017)

Data and documents

Past schemes

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Gas query directory

To help you efficiently find the right person to talk to in relation to specific National Transmission System operational gas queries, we have developed the following contact list and directory. We have based it on the most common queries we receive from our customers. Its purpose is to make finding the right subject matter expert within National Grid, quicker and easier than ever before.

Please note that if your query relates to a home or domestic gas connection or meter exchange, please contact your network operator. You can find who your network operator is on the Energy Networks Association website.  

Download the directory