Independent gas transporter explained

Independent Gas Transporters (IGTs) own and operate smaller, localised gas networks across Great Britain, connecting new housing and other developments to the main Gas Distribution Network (GDN). Understanding their role is crucial for energy industry professionals, developers, and homeowners navigating the UK's evolving energy infrastructure. IGTs are distinct from GDNs, which manage the larger, regional gas infrastructure, yet both are regulated by Ofgem to ensure fair charges and service standards. Properties connected to an IGT network receive their gas supply from a licensed energy supplier of their choice, just like those connected to a GDN.

Understanding how gas networks operate, including the role of Independent Gas Transporters, helps you make informed decisions about your home's energy supply. Fuse Energy is committed to making your energy experience simple and transparent. Click here to switch to Fuse Energy today.

What is an Independent gas transporter (IGT)?

An Independent Gas Transporter (IGT) is a private company licensed by Ofgem to build, own, and operate gas pipeline networks. These networks connect properties to the national gas transmission system, often serving areas not directly covered by the larger, regional GDNs. IGTs emerged following the deregulation of the British Gas market in the 1990s, which opened the network to multiple licensed operators and fostered competition.

Defining IGTs in the UK gas network

IGTs are responsible for the safe and efficient operation and maintenance of their gas networks, including emergency response. They design, install, and maintain gas pipelines, ensuring compliance with safety regulations such as the Gas Safety (Management) Regulations 1996 and the Pipelines Safety Regulations 1996. While they manage the physical network, IGTs do not sell gas directly to customers; instead, they charge energy suppliers for using their pipelines.

The growth of IGTs in new developments

IGTs play a vital role in expanding the UK's gas infrastructure, particularly in new housing developments and other projects. They offer an alternative to traditional GDNs for new connections, often providing bespoke solutions for complex projects. This specialisation ensures that properties in newly developed or previously unserved areas can still access a gas supply, contributing to a more dynamic energy landscape.

Independent gas Transporters vs gas distribution networks

The primary distinction between IGTs and GDNs lies in their scale and operational focus. GDNs are large, established companies responsible for the vast majority of the UK's gas distribution infrastructure, covering broad geographical regions. The UK gas network is primarily operated by eight GDNs.

Key differences in ownership and operation

IGTs operate smaller, localised networks, often built to serve specific new developments or areas where GDN infrastructure is not readily available. Unlike GDNs, which are limited to specific geographical regions, IGTs can own and operate gas networks across England, Scotland, and Wales. IGTs may also pay developers an "asset value payment" to adopt newly constructed gas networks, a practice that differs from the traditional model where developers would gift assets to GDNs.

Impact on consumers

Both IGTs and GDNs are regulated by Ofgem, ensuring they meet the same safety, performance, and service standards. Ofgem's regulation means that it should be no more expensive for an energy supplier to use an IGT network than a GDN network, meaning no additional cost for the end consumer. Consumers connected to an IGT network have the same ability to switch gas suppliers as those connected to a GDN.

How IGTs operate and generate revenue

IGTs are integral to the gas supply chain, responsible for the physical infrastructure that delivers gas to properties. Their revenue model is primarily based on charges levied on energy suppliers.

Network ownership and maintenance responsibilities

Once a network is live, the IGT is responsible for its ongoing operation and maintenance, including annual inspections and ensuring compliance with all relevant safety regulations. They must also have agreements with regional GDNs to manage emergency response through the National Gas Emergency Service, ensuring prompt handling of gas leaks or faults. Examples of prominent IGTs in the UK include GTC, Indigo Networks, ES Pipelines, Fulcrum Pipelines, Last Mile Gas, Energy Assets Pipelines, Leep Gas Networks, and Mua Gas.

Understanding IGT charges and tariffs

IGTs do not charge consumers directly; instead, they charge energy suppliers for the use of their networks. These transportation charges are regulated by Ofgem through a mechanism known as the Relative Price Control (RPC) . The RPC is a licence condition that limits the transportation charges IGTs can levy, encouraging efficiency and ensuring costs remain reasonable for consumers. Ofgem also requires enhanced annual reporting from IGTs to improve transparency and oversight.

Regulatory framework for IGTs

IGTs operate within a robust regulatory framework designed to ensure safety, fair competition, and consumer protection.

Ofgem's role in IGT regulation

Ofgem, the UK's energy regulator, grants licences to IGTs and oversees their operations. This oversight includes setting price controls, establishing service quality standards, and enforcing obligations for network maintenance and safety. Ofgem's regulatory framework aims to balance infrastructure investment with affordable energy services for consumers. The Gas Act 1986, which privatised the gas supply industry, established the licensing regime and the role of the regulator (initially OFGAS, now Ofgem) .

Compliance with industry codes and standards

IGTs must comply with various industry codes and agreements, such as the Uniform Network Code (UNC) . The IGT UNC streamlines and harmonises the network code arrangements for all IGTs, ensuring consistent operational standards across the gas network. This compliance is critical for facilitating competition and ensuring the efficient operation of the gas transportation system.

Finding your gas transporter

Knowing your gas transporter is essential for various reasons, from understanding your network to addressing specific queries.

Using the Find my supplier service

The quickest way to identify your gas supplier and transporter is by using the Find My Supplier service at https://www.findmysupplier.energy/ . This online tool requires you to enter your postcode and will then provide details of your gas supplier, your Meter Point Reference Number (MPRN), and your gas transporter. This service is run on behalf of the gas industry.

Identifying your meter Serial number (MSN)

Your gas Meter Serial Number (MSN) can also provide clues about your transporter. If your gas meter number begins with 74, 75, 76, or 77, you are likely on an IGT network. The letters "IGT" may also appear on your gas bill. The MSN is a unique identifier printed on the physical meter itself and is also typically found on your gas bill. If you cannot locate it, your energy supplier or the Meter Number Helpline can assist.

The future role of IGTs in the UK energy system

IGTs are not just a current component of the gas network; they are poised to play a significant role in the UK's energy future, particularly in connecting new infrastructure and adapting to the energy transition.

Connecting new infrastructure

As urbanisation and development continue, IGTs will remain crucial for extending gas networks to new housing developments and other sites. Their ability to offer bespoke and often more agile connection solutions compared to traditional GDNs makes them vital partners for developers. This aligns with the broader goal of modernising the energy system by ensuring that new developments are integrated efficiently.

IGTs and the energy transition

The UK's energy system is undergoing a significant transition towards decarbonisation. While gas remains a key energy source, IGTs are exploring how their networks can adapt to cleaner alternatives such as biomethane and hydrogen. By ensuring their networks are "hydrogen-ready," IGTs can support the long-term shift away from natural gas, contributing to the UK's net-zero targets. This forward-looking approach demonstrates a commitment to delivering the abundant, clean energy the future requires.

Understanding your energy supply, including the role of IGTs, is key to managing your home's energy effectively. Fuse Energy is committed to making your energy experience simple and transparent. We offer clear pricing, real-time usage data through our app, and 24/7 human customer support. Switching to Fuse is quick and easy, helping you take control of your gas and electricity bills. Click here to switch to Fuse Energy today.