UK To Study More Accurate Gas Billing

UK energy regulator Ofgem has awarded the country's main gas distributor National Grid Gas Distribution, in partnership with technical contractor DNV GL, a three-year contract worth £4.8mn to seek to improve the way gas bills are calculated.

DNV GL said April 26 the project could facilitate greater use of lower-carbon alternative gases to fuel the homes and businesses of the future.

Gas  must be measured first in volume terms and then have its energy content assigned. The contract seeks to explore ways in which the energy content of gas could be specifically assigned, instead of using the present flow-weighted average calorific value. The project's aim is to help unlock the full potential of NGGL's network to distribute renewable and low-carbon alternative gases to consumers.

"This project with National Grid will give new insights on the financial consequences of new billing methodologies for gas consumers, and will help give confidence in gas-pricing based on energy content,” said DNV GL's UK/Ireland regional manager Hari Vamadevan.

By 2030, hydrogen, biomethane and bio-substitute gas -- with lower calorific values than natural gas -- may account for 10% of UK domestic gas use.

National Grid last December agreed a multi-billion dollar divestment of a 61% interest in its NGGD subsidiary to a Macquarie-led consortium.

Mark Smedley