1. Gas System Operator Incentive Review
National Grid NTS, Transmission Workstream, 2 September 2010

2. Gas System Operator Incentives
Incentive arrangements for Operating Margins & NTS Environmental Incentive expire in March 2011
Operating Margins (OM)
OM gas is used to maintain NTS pressures following operational stresses before market balancing measures become effective.
OM is also used to manage the orderly run-down of the System in an Emergency whilst firm load shedding takes place.
Currently, costs of Operating Margins are not incentivised.
NTS Environmental
The current NTS Environmental Incentive compares the level of natural gas vented from compressors against a benchmark.
Any venting above the benchmark means NGG incurring the environmental cost of venting natural gas.

3. Gas SO Incentive Review
Review in progress to consider what should be in place for Operating Margins & Environmental
Initial Proposals led by NGG NTS
October 2010
Final Proposals led by Ofgem
February 2011
Incentives in place 1 April 2011
Incentive consultations and any workshops will be advertised through the SO Incentives mailing list
If you would like more information:
Contact Juliana Urdal at or
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