System Operation
Charging
An explanation of the transportation charges paid by users of the gas National Transmission System (NTS), and how they are calculated.
Charges for use of the NTS
Organisations using the National Transmission System (NTS) to transport gas must pay charges to National Gas for use of the network. These users are predominantly gas shippers and regional gas distribution networks (GDNs). Gas shippers buy gas from producers and sell it on to gas suppliers. They use the NTS to transport gas between the two. Gas distribution networks (GDN) transport gas from the NTS into homes and businesses.
How are NTS charges calculated?
The maximum revenue National Gas can earn for transporting gas (known as “Allowed Revenue”) is determined by price control formulae set by Ofgem. We recover our regulated Allowed Revenue from a range of transportation charges for access to and use of the NTS. The revenues and charges are set in accordance with the National Gas Licence and the Uniform Network Code (UNC). For a detailed overview of these charges and how they are calculated, please refer to our Charging Guide.
The Allowed Revenue for the NTS is divided into:
Transportation Owner (TO) Allowed Revenue – this relates to the costs associated with maintaining and investing in our network.
- System Operator (SO) Allowed Revenue – this relates to the costs of operating the network, such as running our compressor fleet.
The Uniform Network Code (UNC) lays out the Charging Methodology that effectively converts these revenues into charges. The UNC (notably TPD Section Y: Charging Methodologies) sets out the method for creating Transmission Services Revenue (recovered from Transmission Services Charges) and Non-Transmission Services Revenue (recovered from Non-Transmission Charges). Transmission Services and Non-Transmission Services broadly align to the TO and SO respectively.
What are the charges and who pays them?
Transmission Services Charges are predominantly paid by shippers and distribution networks. They cover charges for securing access to the NTS by purchasing and allocating capacity through various electronic auctions and allocation processes. Purchasing capacity gives a customer the commercial rights to flow gas onto, or take gas off, the NTS. These charges are determined separately for NTS entry points and exit points, and discounts to these charges are subject to certain conditions.
Transmission Services Charges are published each year around the end of May.
Non-Transmission Services Charges are paid by shippers predominantly through a flow-based commodity charge, known as the General Non-Transmission Services charge (applicable to entry and exit flows), as well as a small number of specific Non-Transmission charges.
Non-Transmission Services Charges are published every year around the end of July.
All charges apply for one year and come into effect on 1 October. Conditions relating to how these charges change and their timing is laid out in the UNC.
Further information on the methods used to derive transportation charges is set out in UNC – Transportation Principal Document, Section Y – Charging Methodologies.
Gas charging discussion papers
Gas charging discussion documents (GCD) provide an opportunity for us to gather stakeholder views on potential amendments to the gas transmission charging regime. Take a look at our archive of past and current GCD documents. These contain discussions and industry opinions relating to previously proposed changes to gas charges.
Periodic Consultation on the Reference Price Methodology February 2024
Transmission system charges
Find out more about the charges that users of the National Transmission System (NTS) have to pay, and how they are calculated. You can access current and historic transportation charging statements, indicative and final notices of transportation charges, and helpful supporting information.
NTS transportation charging statements
These documents are current and historic gas transmission transportation charging statements. They set out the transportation charges that apply (currently or previously) for using the NTS.