Independent gas Transporters explained

Independent Gas Transporters (IGTs) are a key part of the UK's energy infrastructure, particularly for properties in newer developments. They handle the 'final mile' of gas delivery, connecting homes to the wider national gas network. Understanding their role can help homeowners and residential property developers make informed decisions about gas network connections and energy supply.

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What are independent gas Transporters (IGTs)?

An Independent Gas Transporter (IGT) is a private company, licensed and regulated by Ofgem, the UK's energy regulator, to build, own, and maintain local gas pipeline networks across Great Britain. They play a pivotal role in extending the gas network, particularly for new housing developments not typically served by the larger, traditional Gas Distribution Networks (GDNs).

Their role in the UK gas network

IGTs design, install, and maintain gas pipelines, connecting new developments to the national gas infrastructure. They are primarily responsible for the 'final mile' of gas delivery, ensuring gas flows from the National Transmission System into their local networks and, ultimately, to properties. While IGTs manage this physical infrastructure, the gas itself is supplied by energy companies, who then bill the end-user.

How IGTs differ from gas distribution networks (GDNs)

The primary distinction between IGTs and Gas Distribution Networks (GDNs) lies in their historical development and operational scope. GDNs are the legacy operators, each responsible for a fixed geographical area within Great Britain, inherited from the privatisation of British Gas. There are eight GDNs in Great Britain, owned by four network companies: Cadent, Northern Gas Networks, SGN, and Wales & West Utilities. In contrast, IGTs are private companies that have emerged more recently, operating across Great Britain wherever they have built their own infrastructure, typically serving new build sites. Unlike GDNs, IGTs compete to provide connections to new developments.

The regulatory landscape for IGTs

The operation of IGTs is subject to a robust regulatory framework designed to ensure fair competition, consumer protection, and efficient service delivery.

Ofgem's role in licensing and regulation

Ofgem, the Gas and Electricity Markets Authority, is the independent energy regulator for Great Britain. Ofgem licenses IGTs and oversees their activities, ensuring they comply with their licence conditions and broader industry rules. This regulation aims to promote competition in the gas connections market and ensure that IGTs provide reliable and efficient services to their customers. Ofgem's oversight also covers the charges IGTs levy, which are ultimately passed through to consumers.

The independent gas Transporters Uniform network code (IGT UNC)

All IGTs must comply with the IGTs Uniform Network Code (IGT UNC). This code sets out the operational and commercial rules that govern how IGTs interact with gas suppliers and other industry participants. It covers critical areas such as connection procedures, transportation arrangements, and billing processes, ensuring a standardised approach across the IGT sector. The IGT UNC is crucial for maintaining a level playing field and protecting the interests of all parties involved in the gas supply chain.

Identifying your gas transporter

Knowing whether your property or development is connected to an IGT or a GDN is crucial for understanding your gas supply arrangements.

Using your Meter point Reference number (MPRN)

Your Meter Point Reference Number (MPRN) is a unique number that identifies your gas supply point. This number is typically found on your gas bill. The prefix of your MPRN can sometimes indicate whether your supply is managed by a GDN or an IGT. For example, if your MPRN starts with '74', '75', '76', or '77', it often indicates an IGT supply. If you cannot locate your MPRN, your energy supplier can provide it.

Online tools and resources

Several online tools can help you identify your gas transporter. The "Find My Supplier" website, for instance, allows you to enter your postcode and instantly see which gas transporter is responsible for your supply. This tool can clarify whether your property falls under a GDN or an IGT, providing essential information for homeowners managing existing supplies.

IGTs and new gas connections for developments

For those planning new residential developments, understanding the role of IGTs is vital when planning new gas connections.

The connection process for residential developers

Residential property developers typically engage with either a GDN or an IGT (or an independent connection provider working with an IGT) to establish new gas connections. The process involves designing the network, obtaining necessary approvals, laying pipes, and finally connecting the new infrastructure to the wider gas network. IGTs often offer competitive connection services for new housing developments, providing an alternative to the traditional GDNs.

Considerations for choosing an IGT or GDN

When choosing between an IGT and a GDN for a new residential development, property developers consider several factors. These include connection costs, project timescales, the scope of services offered (e.g., multi-utility connections), and the specific requirements of the site. IGTs can sometimes offer more flexible and tailored solutions, making them an attractive option for certain projects. However, it is essential to evaluate all proposals carefully to ensure they meet the development's long-term needs and regulatory compliance.

Understanding IGT charges and billing

The financial implications of an IGT connection are an important consideration for residential end-users.

How IGT network charges are structured

IGTs levy charges for the use of their gas networks, which cover the costs of building, operating, and maintaining their infrastructure. These network charges are structured to reflect the investment in the local gas pipeline system and the services provided. Unlike energy suppliers who charge for the gas consumed, IGTs charge for the transportation of gas through their pipes.

Pass-through charges from energy suppliers

Crucially, IGT network charges are not billed directly to the end-user by the IGT. Instead, these charges are passed through to energy suppliers, who then incorporate them into the overall gas bill presented to the customer. This means that if your property is connected to an IGT network, the costs associated with that network will be included in the unit rates or standing charges applied by your chosen energy supplier. It is important for consumers to be aware that these charges are a standard part of the gas supply chain, regardless of whether the network is operated by an IGT or a GDN.

The future role of IGTs in the UK energy system

IGTs are set to continue playing a significant role in the evolution of the UK's energy infrastructure.

Supporting network expansion and innovation

IGTs are instrumental in supporting the expansion of the gas network, particularly as new housing developments continue across Great Britain. Their ability to build and operate local networks efficiently helps to ensure that these new sites have access to a reliable gas supply. Furthermore, IGTs contribute to innovation by adopting new technologies and practices in network design and operation, which can lead to more efficient and sustainable gas distribution solutions.

Challenges and opportunities

The future for IGTs also presents both challenges and opportunities. As the UK transitions towards a net-zero economy, the role of gas in the energy mix is evolving. IGTs may face challenges related to declining gas demand in the long term, but also opportunities to adapt their networks for alternative gases, such as hydrogen or biomethane. Their agility and focus on new connections position them well to contribute to a more diversified and sustainable energy system, provided they can adapt to future energy policy and technological advancements.

Fuse Energy is committed to providing clear, data-backed explanations of the UK energy landscape. We believe in empowering homeowners with knowledge about their energy infrastructure. For more detailed information on your specific gas supply, please consult your energy supplier or the official Ofgem resources. Ready to take control of your home energy? Switch to Fuse Energy today for transparent tariffs and 24/7 human support. Click here to get started. You can also learn more about our mission to make energy abundant by clicking here.