UNC0843 Uniform Network Code (UNC) proposed changes
Summary
Ofgem has rejected UNC0843, a proposal by OVO Energy to create an Independent Shrinkage Charge and Independent Shrinkage Expert for gas distribution networks. The modification aimed to incentivise GDNs to reduce gas shrinkage (leakage and own-use losses) by introducing a separate charge and independent oversight. The rejection maintains the status quo where shrinkage costs remain embedded in existing GDN allowances under RIIO-GD2.
Why it matters
Gas shrinkage is a real cost — methane leakage from ageing distribution pipes — but Ofgem evidently judged that layering an additional charge and expert body on top of existing RIIO-GD2 incentive mechanisms would add complexity without proportionate benefit. This is gas distribution, not electricity market structure.
Key facts
- •UNC0843 rejected by Ofgem on 15 April 2026
- •Proposed by OVO Energy in September 2025
- •Would have established an Independent Shrinkage Charge and Independent Shrinkage Expert
- •Targeted emissions reduction on Gas Distribution Networks
Areas affected
Related programmes
Memo
UNC0843 Uniform Network Code (UNC) proposed changes | 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: UNC0843 Uniform Network Code (UNC) proposed changes Publication type: Code modification Publication date: 15 April 2026 Topic: Gas distribution Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Outcome of proposed changes to Uniform Network Code, UNC0843 Establishing the Independent Shrinkage Charge and Independent Shrinkage Expert. Details of outcome The Authority has decided to reject modification proposal UNC0843: Establishing the Independent Shrinkage Charge and Independent Shrinkage Expert. Start date Not applicable. Code modification description On September 2025, OVO Energy submitted the modification to introduce an Independent Shrinkage Charge and Independent Shrinkage Expert. The purpose of the proposal was to incentivise the reduction of emissions on the Gas Distribution Networks (GDNs). Documents UNC 0843 - Establishing the Independent Shrinkage Charge and the Independent Shrinkage Expert (UNC0843) [PDF, 211.32KB] UNC 0843 appendix - Establishing the Independent Shrinkage Charge and the Independent Shrinkage Expert - analysis report [PDF, 262.45KB] Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close