Commercial and Regulatory change

For any background information, an introduction to charging is available on our charging page.

The National Transportation System (NTS) transportation and connection charging methodologies are a part of Uniform Network Code (UNC) Transportation Principal Document (TPD) Section Y. Changes to the charging methodologies must be carried out using the UNC governance and change management processes.

On behalf of the Gas Transporters, the Joint Office (Code Administrator for the Uniform Network Code) publishes information regarding Transportation Charges along with any consultation papers.

The latest news and projects in relation to transportation charges are discussed monthly in the NTS Charging Methodology Forum, details of which are regularly publish of the Joint Office website.

Additional Links

• Transportation Principal Document
• UNC Section Y
• National Grid Gas Charging
• Transportation Statement
  • Long-term Revenue Forecast
  • Discussions

Contact us

For more information, please contact [email protected] for Charging , or [email protected] for Change Management.

GS(M)R Review

In January 2022, the Health and Safety Executive (HSE) published a consultation and impact assessment on proposals to change the Gas Safety (Management) Regulations 1996.  This review of GS(M)R emanated from the ‘Opening up the Gas Market’ report and was built upon by the Institution of Gas Engineers and Managers (IGEM) Gas Quality Working Group which gathered information and produced an evidence case to support changes to the UK gas quality specification.  The HSE’s consultation sought views on a number of changes to these Regulations; those pertaining to gas quality were to:

• Reduce the lower limit for Wobbe Index from 47.2 MJ/m³ to 46.5 MJ/m³
• Remove Incomplete Combustion Factor (ICF) and Soot Index parameters
• Introduce a Relative Density limit of 0.7
• Extend the current class exemption for oxygen in biomethane to a 1.0mol% limit at network pressures below 38 barg.

HSE have been assessing responses and are conducting follow-up interviews and research before making recommendations to ministers for any regulatory changes and publishing the government response to the consultation.

We are keen to ensure that if these changes to the UK gas quality specification are approved, they can be implemented in a timely manner. We have been working with the industry to plan for implementation, including an assessment of which entry terminals may want to implement a lower Wobbe Index limit and what that may mean for gas quality within the network.

If the amendment to the Wobbe Index lower limit is implemented into GS(M)R, we would expect to bring forward a UNC Modification Proposal to enable the relevant entry specification limits to change with suitable transparency arrangements.

We are also exploring the provision of additional gas quality data to the industry.  This began with a Gas Markets Plan (GMaP) project in Spring 2022 and has now evolved into two workstreams; one looking at the requests from industry participants for National Grid to make additional gas quality data available based upon current technology and another, to commence at a future time, which will consider data requirements and technology required as we move through the energy transition and as hydrogen is introduced to the networks.  In relation to the former, we have worked with stakeholders to develop a project scope and a Request for Information to our exit customers which seeks to establish both what is required and why provision of such data would be beneficial.

Due to the current geopolitical situation and its impact on the energy sector, the team has been involved in supporting a number of projects which help to facilitate sustainable flows to Europe, safe management of the network and aid to enable better winter preparedness. The spectrum of projects involves commercial facilitation of reopening of Rough Storage, reform of Gas Demand Side Response arrangements and enhancement to the pressure service at the BBL interconnector. Please see an example of one of the projects below and check our latest newsletter for further details.

Demand Side Response (DSR)

Gas DSR enables large gas consumers, via their shipper/supplier, to offer to reduce their gas demand in return for a payment which they define at times when the national supply/demand balance is tight.  In such situations, DSR represents a commercial opportunity for the consumer as well as a system balancing tool for National Grid that can be deployed to mitigate the risk of such an imbalance progressing to a gas deficit emergency.

The gas DSR arrangements have been in place for a number of years but appear not to have been taken up for a number of reasons, including insufficient commercial incentives, impact on consumers’ operations and the short lead-times required. 

We have sought to address these issues by proposing reforms to the DSR rules that would improve the financial incentives and potentially lengthen the lead-time within which a response would be required a number, and would also enable shippers to make commitments in advance to contract for DSR, in return for an option / availability payment via UNC Modification 0822.