The Independent Networks Association (INA) recently made its submission to Ofgem’s consultation on the sector-specific methodology for RIIO-3, underscoring the critical role of Independent Gas Transporters (IGTs) in the UK’s energy landscape. Representing the interests of IGTs that service three million gas customers across Great Britain, the INA’s response sets out our members’ commitment to ensuring a fair, efficient, and future-ready energy network.
Advocating for Fair Cost Recovery Across the Board
One of the cornerstone points of the INA’s submission is the plea for equitable cost recovery mechanisms. The Association emphasises the importance of ensuring that changes implemented in RIIO-3 do not disproportionately affect customers connected directly to incumbent operators over those connected to IGT networks. This stance is grounded in the belief that repurposing and decommissioning costs of gas networks should be distributed fairly among current and future consumers to avoid penalising any one group.
Preparing for a Future with Heat Pumps
The INA highlights the anticipated rise in disconnection costs as the UK shifts towards alternative heating solutions like heat pumps to meet government targets. It calls for a revision of the current framework to allow IGTs to recover the costs associated with ensuring the safe operation of their networks. The association suggests that Ofgem’s price control should facilitate a mechanism where such disconnection and decommissioning costs can be ‘prepaid’ by current customers, promoting a balanced transition for all stakeholders involved.
Ensuring Competitive Delivery of Network Services
Another vital aspect of the INA’s response is the concern over maintaining a competitive environment for the delivery of network services, especially with the introduction of a Hydrogen Transport Business Model. The INA argues that the RIIO-GD3 outcomes should not inadvertently hinder competition or lead to inefficiencies in service delivery. The proven track record of IGTs in delivering customer-centric services must be recognised and preserved to prevent any single entity from monopolising the market due to preferential funding or regulatory advantages.
Looking Forward: A Call for Engagement and Collaboration
As the UK awaits decisive government policies on the future use of gas networks and heat in buildings, the INA urges Ofgem to engage collaboratively to ensure the IGT framework remains robust and adaptive. The association is keen on working alongside Ofgem to secure the necessary funding and support for IGTs to meet their licensing obligations, thereby safeguarding customer interests now and in the future.
Find out more
The INA’s response to the RIIO-GD3 consultation calls for thoughtful, inclusive policymaking that considers the diverse needs and contributions of all energy sector stakeholders. You can read the INA response to RIIO GD3 Consultation March 2024 here.
