13th November 2017 | Posted by: Daniel Birkett | Industry News

Gas distribution charges are set for an increase in April as network operators have published their indicative prices.

The GB gas distribution networks (GDNs) have released their indicative charges for gas transportation for the 1 April 2018 charging period, confirming an increase.

The charges make up 80% of gas network charges in the UK and apply to gas shippers on behalf of gas distribution networks customers. Network operators levy GDN charges in order to recover their regulated allowed revenue which is set by the energy regulators, Ofgem.

Total allowed revenue for Northern Gas Networks is forecast to decrease by 0.3% and average exit capacity prices are set to drop by 7.4%. Meanwhile, Cadent’s networks will see a 3.9% increase to allowed revenue for the East of England, a 4.2% increase for London, 5.5% for the North West and 5.5% for the West Midlands.

These changes have affected the indicative average transportation price for 2018-19 in the aforementioned regions, resulting in increases of: East of England +4.0%, London 3.5%, North West 4.2% & West Midlands 5.1%.

Forecasts from Wales and West Utilities are also higher, with indicative prices showing an increase of 1.6%, while Southern have risen by 6.7% and Scotland Gas Networks are up by 5.9%.

The prices are expected to be finalised and published on the 1st of February 2018 and could differ slightly from the projected prices.

For more information on changes on the gas and energy markets, feel free to get in touch by calling us on 01257 239500 or by filling out the form on our contact page.