About the Gas industry

Current North Sea gas reserves seem to be drying up sooner than anyone has expected and as a result, we’ve had to get much of our supplies from Europe. The EU has said energy suppliers on the European mainland, particularly France and Germany, have been holding back supplies of gas, thus driving up prices.

The price of gas imported from Europe has also been driven higher by the rising cost of oil because on the continent, contracts for the supply of wholesale gas have traditionally been linked to oil prices.

There is hope of some relief to fuel price anxiety in a few years' time as new foreign operators race to supply the UK's gas needs.

How is Gas Delivered?

Gas is delivered to the seven reception points (called beach terminals) by gas producers operating Offshore Facilities from over 100 fields beneath the sea around the British Isles. In addition a newly commissioned terminal at the Isle of Grain allows Liquefied Natural Gas (LNG) to be delivered to the terminal by sea. After treatment, which includes checking the quality meets the safety requirements and measuring the calorific value (the amount of energy contained in the gas), it is transported through 275,000 Kilometres of iron, steel and polyethylene mains pipeline.

The National Transmission System (NTS) is the high pressure part of National Grid's transmission system and it consists of more than 6,600 Kilometres of top quality welded steel pipeline operating at pressures of up to 85 bar (85 times normal atmospheric pressure, over 1250 psi). The gas is pushed through the system using 26 strategically placed compressor stations. From over 140 off-take points, the NTS supplies gas to 40 power stations, a small number of large industrial consumers and the twelve Local Distribution Zones (LDZs) that contain pipes operating at lower pressure which eventually supply the consumer.

The twelve LDZs are managed within eight gas distribution networks. Following the sale by National Grid of four of the distribution networks, the owners of the distribution networks are now:

North West, London, West Midlands and East of England (East Midlands LDZ & East Anglia LDZ) are owned and managed by National Grid (the area outlined in black)  

Scotland & South of England (South LDZ & South East LDZ) are owned and managed by Scotia Gas Networks – operating as Scotland Gas Networks and Southern Gas Networks respectively 


Wales and the West (Wales LDZ & South West LDZ) is owned and managed by Wales and West Utilities

North of England (North LDZ & Yorkshire LDZ) is owned by Northern Gas Networks, who have contracted operational activities to United Utilities Operations 

Is does not matter which supplier a consumer chooses, the national grid of pipelines will always deliver the gas. 

What is a Meter Point Reference?

This is the unique number used to identify the gas meter which is used in all correspondence with suppliers.

How are gas costs calculated?

Before we see how much gas costs, we have to understand how it's measured.  Gas usage is measured in cubic feet. This is converted into kWh as in Electricity usage.  Each supplier charges a pence rate per unit which is multiplied by the number of kWh used in your billing period.

Standing Charge

A standing charge is a fixed amount you pay each billing period. These charges are used to cover costs like meter reading, maintenance and the cost of keeping you connected to the network.  Some suppliers hide a standing charge by charging a number of units at a higher rate and then the remaining at the agreed lower rate.