About us
How we're regulated
National Gas is regulated by the energy regulator, Ofgem. The regulatory regime overseen by Ofgem applies to all aspects of our gas transmission business.
Our statutory powers and obligations
Our licence to participate in gas transmission activities is established under the Gas Act 1986, as amended (the Act). This requires us to develop, maintain and operate economic and efficient networks and to facilitate competition in the supply of gas in Britain. The licence also gives us statutory powers, including the right to bury our pipes under public highways and the ability to use compulsory powers to purchase land so that we can conduct our business.
As the owner of the national gas transmission network in Great Britain, we’re classed as a ‘natural monopoly’. The purpose of the regulatory regime is to simulate the effects of competition, so that we deliver outcomes that are in the interests of consumers. For example, Ofgem sets price controls that limit the amount we can earn from charges for the use of our network.
Price controls
Our National Gas Transmission business operates under one price control, 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 Gas Metering.
Ofgem regulatory framework: RIIO
The Ofgem regulatory framework is known as RIIO (Revenue = Incentives + Innovation + Outputs). The RIIO framework sets the funding for National Gas Transmission during each five-year regulatory period. It determines our expected outputs, commitments and costs, and offers incentives for innovation and securing investment to develop sustainable energy networks at the lowest cost for customers.
The regulator reviews and assesses our business plan for each regulatory period, known as a ‘price control’ period.
As National Grid Gas Transmission, we completed the RIIO-T1 price control period, which began on 1 April 2013 and ran through to 31 March 2021. You can find out more on the Ofgem website.
As National Gas, we are now working in the RIIO-2 price control period, which started on 1 April 2021 and will run through to 31 March 2026. You can learn more about the background to RIIO-2 on the Ofgem website.
Find out all about our RIIO-2 business plan commitments and how they were shaped by an extensive engagement exercise to understand the priorities and future requirements of our stakeholders.
Work is now underway to develop our business plan for the RIIO-GT3 price control period, which will run from April 2026.
RIIO incentives
To encourage us to provide additional benefits for consumers, Ofgem uses financial incentives – which can be either penalties or additional revenue (funded by our customers), depending on whether or not we meet Ofgem’s targets. Ofgem incentivises us to find more efficient ways to work. If we can find cheaper solutions, the benefit is shared between consumers and National Gas.
RIIO innovation funding
As part of the RIIO framework, there are two funding mechanisms that encourage innovation across the energy industry. These mechanisms aim to help make the energy networks smarter, accelerate the development of a low-carbon energy sector and deliver financial benefits to consumers. They are:
- The Network Innovation Allowance (NIA) – provides an annual allowance to fund smaller scale projects.
- The Network Innovation Competition (NIC) – an annual competition to secure funding for large-scale demonstration projects aimed at building a lower carbon future for the UK.
How we're regulated
RIIO-2
The RIIO-2 price control period runs from 2021-2026. Find out how we’re performing under our current plans, for reliability and more
Find out more
System Operator Incentives
As the System Operator (SO), National Gas is subject to regulatory incentives, which encourage us to maintain and improve our operational efficiency.
Find out more
RIIO-3
National Gas Transmission is regulated by Ofgem. The regulatory framework is called RIIO (revenue = incentives + innovation + outputs) and covers our role as transmission owner (TO) and gas system operator (SO).
Find out moreRegulatory documents
Chapter 3 of Annex I of Regulation (EC) No 715/2009
EU TAR NC publication requirements
| Link | Further details | |
|---|---|---|
| 3.1.2 a) | A detailed and comprehensive description of the different services and their charges | The 'Uniform Network Code' is published on the Joint Office of Transporters website. The statement of Gas Transmission Transportation Charges can be found here. |
| 3.1.2 b) | Different types of transportation contracts available for these services | High-level capacity information can also be found on our website. There is also Uniform Network Code - section B. |
| 3.1.2 c) | Do you publish the network code and/or the standard conditions outlining the rights and responsibilities | The 'Uniform Network Code' is published on the Joint Office of Transporters website. |
| 3.1.2 c) 1 | Harmonised transportation contracts and other relevant documents | The 'Uniform Network Code' is published on the Joint Office of Transporters website. |
| 3.1.2 c) 2 | Specification of relevant gas quality parameters | The 10 year statement (Appendix A5.3.2. Network Entry Quality Specifications). European transparency information can be found on this page. |
| 3.1.2 c) 3 | Pressure requirements | The 10 year statement (Appendix A5.3.2. Network Entry Quality Specifications). |
| 3.1.2 c) 4 | Procedure in the event of an interruption of interruptible capacity | Uniform Network Code Section B2.9 Further information on entry capacity scaleback can be found here. |
| 3.1.2 d) | Harmonized procedures applied when using the transmission system, including the definition of key terms | The 'Uniform Network Code' is published on the Joint Office of Transporters website. |
| 3.1.2 e) | Provisions on capacity allocation, congestion management and anti-hoarding and reutilisation procedures | Uniform Network Code (section B) |
| 3.1.2 f) | Rules applicable for capacity trade on the secondary market vis-à-vis the transmission system operator | Uniform Network Code (section B) |
| 3.1.2 g) | Rules on balancing and methodology for the calculation of imbalance charges | Uniform Network Code (section D, E & F) |
| 3.1.2. h) | Flexibility and tolerance levels included in transportation and with additional charges | Uniform Network Code (section E). Tolerance is set to zero and no additional flexibility services are available. |
| 3.1.2 i) | Detailed description of the gas system of TSO and its relevant points of interconnection / names of the operators of the interconnected systems or facilities | Information about the gas industry. |
| 3.1.2 j) | Rules applicable for connection to the system | There is also the Statement of Gas Transmission Transportation Charges, which can be found here, and the Uniform Network Code - published on the Joint Office of Gas Transporters website. |
| 3.1.2 k) | Information on emergency mechanisms | Further information on Gas Deficit Warnings (GDW) and Margins Notice (MN) on our website. Further information can be found in the Uniform Network Code – Section Q. |
| 3.1.2 l) | Procedures agreed at interconnection points (if relevant) relating to interoperability of the network, agreed procedures on nomination and matching procedures and other agreed procedures that set out provisions in relation to gas flow allocations and balancing | Uniform Network Code - published on the Joint Office of Gas Transporters website. For nominations and matching see Section C, for provisions in relation to allocations and balancing see sections D, E & F. |
| 3.1.2 m) | Description of the methodology and process used to calculate the technical capacity | Determination of the technical capacity of the National Transmission System |
| 3.3.1 a) | the technical capacity for flows in both directions; Entry & Exit | Entry = Entry Capacity Auction Publication, 'Auction Type' = Long Term Summary. 'Report Type' = Summary Report). Exit = Exit Capacity Publications, then 'Auction Type' = Long Term Summary. 'Report Type' = Summary Report. |
| 3.3.1 b) | the total contracted firm and interruptible capacity in both directions; Entry & Exit | Entry = Entry Capacity Auction Publication, 'Auction Type' = Long Term Summary. 'Report Type' = Summary Report). Exit = Exit Capacity Publications, then 'Publication Type' = Long Term Summary. 'Report Type' = Summary Report. |
| 3.3.1 c) | the nominations and re-nominations in both directions; | Nominations report. Operational Data -> Report Explorer (Energy Daily Reports -> Pre Day / Within Day -> Nominations Report |
| 3.3.1 d) | the available firm and interruptible capacity in both directions; Firm: Entry & Exit Interruptible: Entry & Exit | Firm Entry = Entry Capacity Auction Publication, 'Auction Type' = Long Term Summary. 'Report Type' = Summary Report). Firm Exit = Exit Capacity Publications, then 'Publication Type' = Long Term Summary. 'Report Type' = Summary Report. Entry Interruptible: Entry Capacity>System Entry Points>Within Day>'Entry Capacity, Site Name, Daily Interruptible Available.' Exit Interruptible Exit Capacity > Exit Capacity Availability > Daily Off-Peak Available > Site Type > |
| 3.3.1 e) | actual physical flows; | Entry: Supplies>Daily Actuals>Energy>'System Entry Energy, Site Name, D+1' (Also M+15 - Closed Out) Exit: Demand>Exit Point Actuals>Site Type>Energy>'NTS Energy Offtaken, Site Name, Site Type.' |
| 3.3.1 f) | Planned and actual interruptions | Planned Entry/Exit: EU Harmonisation Of Maintenance Publications at Interconnection Points (Strictly speaking there is no planned interruption of capacity in advance of the gas day in the GB regime). Actual Entry: Entry Capacity >ICF >site name entry, ICF Actual Exit: Exit Capacity > Exit Capacity Constraint>Booked Off-Peak Capacity Actual Exit: Exit Capacity > Exit Capacity Constraint >Capacity scaled back by Actual Exit: Exit Capacity > Exit Capacity Constraint > Scaleback/Restoration Factor |
| 3.3.1 g) | Planned and unscheduled interruptions, interruptions of firm services, | NG do not have unplanned interruptions to firm service. Firm service is only interrupted on an 'unplanned' basis as part of a Network Emergency situation |
| 3.3.1 h) | occurrence of unsuccessful, legally valid requests for firm capacity products with a duration of one month or longer including the number and volume of the unsuccessful requests | Covered by new CMP uploads from 1st October |
| 3.3.1 i) | in the case of auctions, where and when firm capacity products with a duration of one month or longer have cleared at prices higher than the reserve price | Covered by new CMP uploads from 1st October |
| 3.3.1 j) | where and when no firm capacity product with a duration of one month or longer has been offered in the regular allocation process | Covered by new CMP uploads from 1st October |
| 3.3.1 k) | total capacity made available through the application of the congestion-management procedures laid down in points 2.2.2, 2.2.3, 2.2.4 and 2.2.5 per applied congestion-management procedure | Covered by new CMP uploads from 1st October |
| 3.3.4 | gross calorific values or the Wobbe index | Exit: Energy Daily Reports>After Day > Calorific Value Report Energy Daily Reports>After Day > Actual Offtake Point Entry: Energy Daily Reports>After Day >NTS Commercial Entry End Of Day (NTSEOD) Energy Daily Reports>After Day >NTS Physical Entry End Of Day (NTSEOD) |
| 3.3.5 | available capacities, booked and technical capacities, on an annual basis over all years where capacity is contracted plus 1 year, and at least for the next 10 years. Reflecting the period for which capacity is offered to the market Entry & Exit | Entry: 'The Long Term Entry Capacity Summary Report. (Operational Data -> Entry Capacity Auction Publication. Auction Type = Long Term Summary. Report Type = Summary Report). Exit: The Long Term Exit Capacity Summary Report. (Operational Data -> Exit Capacity Publications. Publication Type = Long Term Summary. Report Type = Summary Report). |
| 3.4.1 | the aggregated amounts of capacities offered, and contracted on the secondary market (i.e. sold from one network user to another network user) | Entry Capacity Daily Reports>Entry Capacity Trading Report (NORD03) and Exit Capacity Daily Reports (After Day) |
| 3.4.1 a) | interconnection point where the capacity is sold, entry & exit | Entry Capacity Daily Reports>Entry Capacity Trading Report (NORD03) and Exit Capacity Daily Reports (After Day) |
| 3.4.1 b) | type of capacity, i.e. entry, exit, firm, interruptible; | Entry Capacity Daily Reports>Entry Capacity Trading Report (NORD03) and Exit Capacity Daily Reports (After Day) |
| 3.4.1 c) | quantity and duration of the capacity usage rights; entry & exit | Entry Capacity Daily Reports>Entry Capacity Trading Report (NORD03) and Exit Capacity Daily Reports (After Day) |
| 3.4.1 d) | type of sale, e.g. transfer or assignment; entry & exit | Entry Capacity Daily Reports>Entry Capacity Trading Report (NORD03) and Exit Capacity Daily Reports (After Day) |
| 3.4.1 e) | the total number of trades/transfers; | Entry Capacity Daily Reports>Entry Capacity Trading Report (NORD03) and Exit Capacity Daily Reports (After Day) |
| 3.4.1 f) | any other conditions known to the transmission system operator as mentioned in 3.3. | N/A |
| 3.4.2 | Do you publish the following specifications regarding harmonised conditions under which capacity transactions (e.g. transfers and assignments) will be accepted | Uniform Network Code |
| 3.4.2 a) | a description of standardised products which can be sold on the secondary market; | High-level capacity information. Further information can also be found in the Uniform Network Code (section B). |
| 3.4.2 b) | lead time for the implementation/acceptation/registration of secondary trades. In case of delays the reasons have to be published; | High-level capacity information. Further information can also be found in the Uniform Network Code (section B). |
| 3.4.2 c) | the notification to the transmission system operator by the seller or the third party as referred to under 3.4(1) about name of seller and buyer and capacity specifications as outlined in 3.4(1). | High-level capacity information. |
| 3.4.3 | Balancing services | All users information is published in "Gemini". Users receive their individual preliminary information at D+2 and final information at M+15. No shipper specific information is published on our website. |
| 3.4.4 | Further flexibility service of TSO | We do not offer such services |
| 3.4.5 | Amount of gas in the transmission system at the start and end of each day and the forecast amount of gas for the end of each gas day | Opening linepack/closing linepack is published on Prevailing View Hourly forecasts of Closing Linepack is published each hour (PCLP) |
| 3.4.5 Continued | the aggregate imbalance position of all users at the start of each balancing period and the forecast | Daily Balance Reports shows Shippers Aggregate Entry Flows & Shippers Aggregate Exit Flows. Report Explorer -> Energy Daily Reports -> Pre Day/Within Day -> System Nomination Balance (NB05) |
| 3.4.6 | User-friendly instruments for calculating tariffs | Transportation Charging Calculator |
| Description | Link | Further details | |
|---|---|---|---|
| Information to be published before the annual yearly capacity auction | |||
| Art. 29 (a) | Information for standard capacity products for firm capacity (reserve prices, multipliers, seasonal factors, etc.) | Gas transmission system charges | The indicative notices under the attached link contain relevant information for capacity products. |
| Art. 29 (b) | Gas capacity | ||
| Information to be published before the tariff period | |||
| Art. 30 (1)(a) | Information on parameters used in the applied reference price methodology related to the technical characteristics of the transmission system. | 0621 - Amendments to Gas Transmission Charging Regime | Being developed under UNC Modification 0621. |
| Art.30(1)b(i) | Information on the allowed and/or target revenue. | Gas transmission system charges | The statement of Gas Transmission Transportation Charges contains information on allowed/target revenue. |
| Art. 30 (1)(b)(ii) | Information related to changes in the revenue. | Gas transmission system charges | The statement of Gas Transmission Transportation Charges contains information on changes in allowed revenue and charges. |
| Art. 30 (1)(b)(iii) | Information related to the following Parameters: types of assets, cost of capital, capital and operational expenditures, incentive mechanisms and efficiency targets, inflation indices. | To be updated | Link to be available as soon as the information is moved onto the new website. |
| Art. 30 (1)(b)(iv,v) | Information on the transmission services revenue including capacity-commodity split, entry-exit split and intrasystem/cross-system split. | UNC Section Y | UNC Section Y contains the revenue information including the Commodity/Capacity split and the Entry and Exit split. |
| Art. 30 (1)(b)(vi) | Information related to the previous tariff period regarding the reconciliation of the regulatory account. | Gas transmission system charges | The long-term revenue forecast file includes the previous actuals compared to forecast which highlights the over/under recovery value. |
| Art. 30 (1)(b)(vii) | Information on the intended use of the auction premium. | To be updated | Link to be available as soon as the information is moved onto the new website. |
| Art. 30 (1)(c) | Information on transmission and nontransmission tariffs accompanied by the relevant information related to their derivation. | Transportation Principal Document | The Transportation Principal document contains the relevant information that explains the transportation/Charging mechanism |
| Art. 30 (2)(a) | Information on transmission tariff changes and trends. | Gas transmission system charges | The notice of NTS Transportation Charges explains and highlights the changes in tariff from previous charge setting period. |
| Art. 30 (2)(b) | Information about the used tariff model and an explanation how to calculate the transmission tariffs applicable for the prevailing tariff period. | Gas transmission system charges | The link gives information on how to use the Transportation model. It also gives information on how shippers can request and a copy of the Transportation model. |