London, 14 December 2022 – The EIUG welcomes the decision of National Grid Gas Transmission Operator (NG GSO) to extend the deadline to submit offers for gas demand side response (DSR) from large gas users to 23 December. This gives shippers and/or suppliers more time to engage with their customers and put the necessary processes in place to administer this new gas DSR service. The EIUG calls on gas shippers and suppliers to play their role in minimising risks to security of gas supply this winter.
What has been assessed and what has been the response?
Gas Demand Side Response is when consumers offer to enter an agreement to reduce their demand, during the build up to a gas emergency, in return for payment. In its Winter Gas Outlook, NG GSO assessed that the gas infrastructure in Great Britain has sufficient capability to meet peak demand, but risks have increased. In response to this increase, it has worked with large gas consumers, suppliers and other stakeholders to introduce a new Gas DSR service for this and next winter.
Gas DSR Service
Gas DSR Service predominantly involves a three way party interaction between gas consumers, gas shippers and NG GSO. Unfortunately, some gas shipper/suppliers have not (yet) put the necessary arrangements in place for large gas consumers to make use of this new DSR service. The extension of the deadline to submit bids allows them to do so.
The relaxation of permitting conditions for fuel switching
The EIUG also welcomes the director from Government to the Environment Agency (EA) to temporarily relax permitting conditions for fuel switching from gas to permitted non-gas alternative fuels for EA permit holders in England, outside of normal permit conditions, during this and the next two winters. This will allow some large gas users to participate in the new DSR service. However, some other large gas users are regulated by local authorities to which the direction does not apply, meaning that they still cannot participate in the service by switching fuels.