22nd Jan 2021 12:06
(Alliance News) - Ofgem on Friday announced the publication of its minded to decision and impact assessment for introducing a conditional discount to the UK gas transmission charging framework to dis-incentivise inefficient bypass of the national transmission system.
The UK's national transmission system is a high pressure network that transports gas. The UK energy regulator is consulting on introducing a discount for companies that avoid inefficient bypass of this system, which is owned an operated by National Grid PLC subsidiary National Grid Gas PLC.
In May 2020, it approved a modification proposal , UNC678A, which introduced reforms to gas transmission charging and removed the optional commodity charge, which had provided a discount to eligible users for gas transportation with with the aim of avoiding inefficient bypass. This was previously known as the short-haul discount.
Ofgem received a set of five proposals, labelled UNC728A, B, C, And D. It has considered all five and is minded to approve UNC728B, which "envisages a maximum discount of 90% and a minimum of 10% applied to transmission services charges for distances of up to 28 kilometres".
It is seeking views and additional evidence on both its impact assessment of the move as well as the minded to decision.
Shares in National Grid were up 0.6% at 873.80 pence in London on Friday.
By Anna Farley; [email protected]
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