Natural Gas: Fees and Charges

Department for Business, Energy and Industrial Strategy written question – answered on 11th June 2020.

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Photo of Alexander Stafford Alexander Stafford Conservative, Rother Valley

To ask the Secretary of State for Business, Energy and Industrial Strategy, for what reason Ofgem rejected a modification to enable daily metered sites that have reduced gas demands as a result of covid-19 to reduce their capacity charges until 1 October 2020.

Photo of Kwasi Kwarteng Kwasi Kwarteng The Minister of State, Department for Business, Energy and Industrial Strategy

Ofgem, as the independent energy regulator, has responsibility for matters relating to gas network charging and has made their decision in accordance with their statutory duties, including their principal objective which is to protect the interests of GB’s energy consumers.

When making their decision on UNC725, Ofgem sought to balance the recognition of the Covid-19 circumstances against the principles which underpin the transportation charging arrangements, and gas transporters own financial circumstances. In their assessment, Ofgem considered that the proposed modification did not promote the efficient operation of the network and could have an adverse effect on the gas transporters’ ability to discharge their licence obligations.

Please visit https://www.ofgem.gov.uk/publications-and-updates/unc725-ability-reflect-correct-customer-network-use-and-system-offtake-quantity-soq-during-covid-19 for more information on the decision.

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