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Independent gas transporters
The UK’s gas distribution network was deregulated in the early 1990s, ending British Gas‘ monopoly. Instead, multiple regulated companies were allowed to own, operate, and maintain different parts of this gas network.
During this transition, independent gas transporters (IGTs) were introduced to serve areas not covered by the main grid, ensuring gas supply to new and off-grid developments.
This article explores the role of IGTs, their benefits for businesses, and how Ofgem ensures they maintain fair pricing and high standards.
Contents
- What are independent gas transporters (IGTs)?
- What is the role of an independent gas transporter?
- Major UK independent gas transporters (IGTs)
- How to identify an independent gas transporter?
- How are independent gas transporters regulated and priced?
What are independent gas transporters (IGTs)?
Independent gas transporters (IGTs) are private companies operating outside the British main gas distribution network.
Put simply, they own and maintain gas pipelines in areas not covered by the national gas grid, such as new housing developments, industrial sites, and rural locations.
IGTs collaborate with developers, utility providers, and contractors to build infrastructure for these projects, managing the pipelines once they are built.
IGTs do not sell gas directly but charge business energy suppliers for using their pipelines. Ofgem regulates prices to ensure they remain very similar to those of the main gas grid, preventing any price inflation for end consumers.
What is the role of an independent gas transporter?
Independent gas transporters (IGTs) connect new housing developments, rural locations, or industrial estates in off-grid areas to the principal British gas distribution network.
Here’s a breakdown of their main responsibilities:
1. Infrastructure Development
IGTs are responsible for designing, building, and maintaining gas pipelines in areas where extending the national grid is deemed unviable by the traditional companies that operate them.
They collaborate with developers and contractors to establish the gas network infrastructure for new projects, such as housing estates or business parks.
2. Operation and Maintenance
Once operational, IGTs transport gas from the national grid or other networks to end consumers. They do this by maintaining the safety and efficiency of their pipelines via routine checks, emergency response, repairs, and ensuring compliance with health and safety standards.
3. Third-Party Access
IGTs provide third-party access to their networks (as the regulator Ofgem requires), meaning gas suppliers can use their pipelines to deliver gas to consumers. They charge suppliers for using these networks, and these costs are passed on to consumers through their gas bills.
4. Market Competition
IGTs contribute to competition in the UK gas market by offering an alternative to traditional gas distribution networks (GDNs), particularly in areas that GDNs do not cover. This competition promotes cost efficiency and expands gas access to areas that would otherwise be underserved.
Major UK independent gas transporters (IGTs)
In the UK, there are currently 21 licenced independent gas transporters (IGTs), each covering a slightly different geographical and market segment. Here’s a summary of the ten biggest:
| Independent Gas Transporter | Assets/Operations | Operating Since |
|---|---|---|
| GTC Pipelines | Operates over 20,000 km of utility networks across the UK, serving residential and commercial developments. | 1995 |
| Independent Pipelines | Provides local gas distribution, primarily focused on smaller, rural, or off-grid developments. | 1992 |
| Indigo Pipelines | Manages over 200,000 gas connections across the UK, focuseing on new housing and business developments. | 1992 |
| ES Pipelines | Runs pipelines serving over 1 million homes across the UK, working closely with developers on new builds. | 1998 |
| Energy Assets Pipelines | One of the largest independent operators, with assets including gas, electricity, and water networks. Operates nationally. | 2005 |
| Fulcrum Pipelines | Operates pipelines across the UK, with a focus on new housing and commercial projects. Works with developers for infrastructure. | 2007 |
| Murphy Gas Networks Limited | Primarily focused on infrastructure construction and pipeline adoption for housing developments. | 2017 |
| Leep Gas Networks Limited | Manages gas networks for new residential and industrial estates, partnering with developers. | 2017 |
| Quadrant Pipelines | Part of the GTC group, operating in partnership to extend gas networks in the UK. | 1990s (Exact year not specified) |
| Harlaxton Gas Networks | Focuses on gas distribution in the Midlands and North of England, with significant regional infrastructure. | 2016 |
Source: Ofgem
How to identify an independent gas transporter?
Your business is connected to an independent gas transporter’s network if:
- The MPRN associated with your business gas meter begins with 74, 75, 76, or 77.
- Your business gas bill indicates “IGT” on the first page (only some suppliers indicate this).
- You contact your business gas supplier, and they ascertain this.
How are independent gas transporters regulated and priced?
Ofgem regulates Independent gas transporters (IGTs) to ensure fair pricing and service.
Ofgem enforces a Relative Price Control (RPC) mechanism, which caps the charges IGTs can impose, aligning them with the equivalent costs of Gas Distribution Networks (GDNs).
This ensures that customers on IGT networks do not face significantly higher costs than those connected to the regular gas network.
IGTs must also comply with Ofgem’s safety, performance, and service standards to maintain operational reliability and protect consumer interests.
💡Did you know? Ofgem’s RPC mechanism standardises costs, meaning independent gas transporters (IGTs) must structure their fees to match the regional GDN, regardless of their own network costs. Despite this, some IGTs have been operational since the early 90s and remain profitable.
Independent gas transporters – FAQs
Our business energy experts answer commonly asked questions on independent gas transporters in Britain.
Are there additional charges when using an independent gas transporter?
Yes, IGTs charge suppliers for using their networks, and customers pay these costs in their gas bills.
However, since Ofgem regulates these charges, the costs are similar to using the regular national gas network.
In summary, using an IGT costs essentially the same as a regular connection in the national gas grid.
Can I switch my business gas supplier if I’m on an IGT network?
Yes, you can switch business energy suppliers just like any other customer in the national gas grid.
Being in an IGT network is bound by the same accessibility regulations and therefore doesn’t affect your ability to change suppliers.
What happens if there is a gas supply issue with an IGT?
If there’s a supply issue, you should contact your business gas supplier. Depending on the nature of the issue, they or the IGT will handle it.
The National Grid’s emergency number (0800 111 999) should be contacted in case of emergencies.
Are there any consumer protections in place for IGT customers?
Absolutely. Ofgem regulates IGTs to ensure fair pricing and service standards, protecting customers through price caps (Relative Price Control) and performance requirements.
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