This Project explores options for a fair and equitable billing methodology for the gas industry which will be fit-for-purpose in a lower-carbon future.

It aims to integrate diverse gas sources without needing to standardise energy content and will inform the industry on billing options for a sustainable gas future.

Great Britain (GB) has relied on North Sea Gas since the 1970s with regulations and billing regimes designed for this stable and reliable source of gas. The supply market is changing rapidly with liquefied natural gas (LNG) imports making up 18% of supply in 2015. By 2030 biomethane and bio-substitute natural gas from a large number of sources could account for 10% of domestic gas usage.

The current Flow Weighted Average Calorific Value (CV) billing regime may restrict entry to unconventional gases that comply with Gas Safety (Management) Regulations, GS(M)R. Additional, expensive processing is required to match the CV of the primary inputs. The Project explores options for assigning CV at a more specific level, to avoid processing, and could provide a more robust attribution of gas energy to customers generally for decades to come.

Objectives

Recommend a revised energy assignment methodology that is robust and equitable to consumers and industry stakeholders to meet future needs.