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.
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.