Page 31 - Gi March 2019 - Flipbook

key
1. Scotland
2. Northern
3. North Western
4. North Eastern
5. East Midlands
6. West Midlands
7. Wales/Cymru
8. Eastern
9. North Thames
10. South Eastern
11. Southern
12. South Western

THE BRITISH GAS REGIONS

competition, and to regulate the charges a single contractual framework for all The sold networks are now known
to potential competitors for access to gas suppliers. as Northern Gas Networks, SGN and
the pipeline system. Consequently, the government’s most Wales & West Utilities.
The MMC recommendations led to significant change, the introduction National Grid announced an
the integrated gas business regions of the 1995 Gas Act, paved the way intention to sell its four remaining
being dissolved, after 45 years of for domestic competition. The act gas distribution businesses in 2015,
operation, on 21 March 1994. created a new licensing regime with creating a new subsidiary, National Grid
They were replaced by five national three categories of regulated players; Gas Distribution, now known as Cadent
businesses units: gas transporters, shippers and under different ownership. Today, we
TransCo (transportation and storage) suppliers. Initially, there was only one have eight distribution networks, four
Public Gas Supply gas transporter, TransCo. Domestic owned by Cadent, one by Northern
Contract Trading (business gas) competition followed, and in February Gas Networks, two by SGN and one by
Retail 1997, British Gas Plc took the decision Wales & West Utilities. These share the
Services to demerge its trading businesses, boundaries of the 12 regions of the pre-
creating Centrica Plc. Centrica retained February 1994 integrated gas business.
TransCo comprised the distribution the rights to use the ‘British Gas’ brand National Grid continues to own and
pipeline operations of each region, plus in the UK. At the same time, British Gas operate the national transmission
national transmission. Plc changed its name to BG Plc. TransCo network and the former Transco
Outside the gas business, British remained as a business unit. metering business.
Gas Plc continued to own the offshore The gas industry subsequently Experts suggest that gas growth will
supplies in a division, Exploration and changed rapidly, with the UK now continue to accelerate over the coming
Production. In addition to pipelines, having the most widespread competition years as the infrastructure networks
TransCo took the metering and amongst gas suppliers in the world. become more diverse. In addition,
gas storage activities. The trading In 2000, BG Plc restructured alternative supply options such as
businesses remained under the and shortly after initiated another biomethane, shale gas and hydrogen,
British Gas brand and inherited all the demerger. This led to the exploration alongside technology innovation,
upstream wholesale supply contracts. and production activities remaining are paving the way for a future with
The downstream pipeline system, with BG under a new holding company, significantly lower fossil fuel emissions.
now separated and independently BG Group Plc, and the key business Furthermore, experts predict that
operated by TransCo, enabled the unit, Transco, being demerged in a new as the gas networks grow and market
liberalisation process, allowing other entity named Lattice Group Plc. structures transform, a more competitive
gas suppliers access to the transmission Following this, Lattice Group Plc gas market will likely emerge.
and distribution system. merged with the electricity company With robots being implemented to
Over time, more new downstream National Grid Company Plc to form the utilities industry, the prospect of
supply companies entered the market, National Grid Transco, in 2002. hydrogen being introduced into the gas
meaning that increasing volumes of In 2005, National Grid Transco network and the development of smart
gas supplies could now be transported separated half its distribution homes, we can anticipate that the next
and sold directly to consumers. The networks and sold them. The shorter 25 years will be an equally exciting time
Network Code was developed to provide name National Grid was then used. of development for our industry.

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