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Consultation on additional Network Innovation Allowance funding for National Gas Transmission

OFGEM·consultation·LOW·7 Mar 2025·source document

Summary

Ofgem consults on additional Network Innovation Allowance (NIA) funding for National Gas Transmission.

Why it matters

Sister decision to the equivalent electricity-distribution NIA top-up. Allows NGT to register additional innovation projects during the late RIIO-2 period. Modest incremental funding rather than structural change.

Areas affected

transmission
Memo

Consultation on additional Network Innovation Allowance funding for National Gas Transmission | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Consultation on additional Network Innovation Allowance funding for National Gas Transmission Publication type: Consultation Publication date: 7 March 2025 Closed date: 5 April 2025 Status: Closed (with decision) Topic: Gas transmission Decision: Decision to extend the National Gas Transmission's Network Innovation Allowance funding to support additional hydrogen innovation during RIIO-2 Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn We are consulting on a proposal to direct an extension of the Network Innovation Allowance (NIA) to National Grid Transmission (NGT) for their hydrogen innovation projects via the Hydrogen Innovation Funding (HYINt) mechanism found in Special Condition (SpC) 5.2 of NGT’s Gas Transporter Licence. Who should respond We would like views from gas network transmission companies along with those that have an interest in gas transmission and distribution networks, and the adaptability of these for hydrogen. Background The NIA is funding available to fund innovation relating to support for consumers in vulnerable situations and/or the energy system transition. At RIIO-2 Final Determinations we recognised that in the gas sector, there was uncertainty around the extent to which gas networks may, in the future, have in the role of transporting hydrogen and the extent of innovation activity needed to support this. We therefore introduced Part B “Hydrogen Innovation Funding (HYINt)” of SpC 5.2 to the Gas Transporter Licence, to allow Ofgem to direct additional NIA funding for hydrogen innovation activities during RIIO-2 subject to the conditions set out in the licence being met. The additional funding requested by NGT would cover the development of the hydrogen safety case which would contribute to being able to repurpose the National Transmission System for hydrogen. See the latest version of the RIIO-2 NIA Governance Document Why your views matter Your responses will help us to inform our final decision. How to respond Send your response to networks.innovation@ofgem.gov.uk . This consultation closes for responses on Friday 4 April 2025. Main document Consultation on a proposal to extend the National Gas Transmission’s Network Innovation Allowance funding to support additional hydrogen innovation during RIIO-2 [PDF, 256.55KB] Response documents Consultation Responses to NIA funding for NGT [ZIP, 764.58KB] Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close