National Grid Gas Transmission (NGGT) is delivering well across all of its outputs and is on track to meet its main targets, Ofgem has said.
In its annual report for gas transmission, it looked at the performance of NGGT against its whole price control obligations and incentives during the sixth year of the RIIO-1 price control period. While NGGT was found to be delivering strongly across the majority of its outputs, minor issues were observed on reliability and availability. It explained this was due to system issues and planned outages that had affected a minority of auctions, as well as gas demand forecasting being affected by evolving gas usage variability.
Incentive performance was found to be broadly in line with previous years. In 2018-19, the transmission owner (TO) earned £4.2mn out of a possible £10.3mn while the system operator (SO) earned £19.2mn out of a possible £49.7mn. Total expenditure (totex) performance saw NGGT forecast an overspend of £290mn against its total allowance of £2,922mn for RIIO-GT1. The majority of this overspend is because of costs associated with improving the condition of assets on the National Transmission System. On customer cost, the average GB customer can expect to pay £9.75 for gas transmission costs on their energy bill.
When it comes to innovation, NGGT spend £4.7mn of their annual allowance of £4.8mn. Around £2.9mn was attributed to expenditure on the Network Innovation Competition (NIC), related to two projects in particular – Project GRAID (Gas Robotic Agile Inspection Device) and Project CloCC (Customer Low Cost Connections).