Ofgem's recent decision on GCR leaves us in uncertainty
December 20th, OFGEM has finally given its opinion on the Gas Charging Review, the GB transcription of the European Tariff network code.
In July 2018, the Panel in charge of reviewing the implementation of the GCR recommended that, following more than two years of heavy industry discussions, none of the 11 options identified by National Grid and the industry (UNC621) should be implemented.
Five months after receiving this recommendation not to implement from the industry Panel, OFGEM confirmed yesterday they would not pick any of the UNC621 proposal, asking the industry to go back to the drawing board.
Although this decision may have been expected, what remains nebulous is how OFGEM can expect the industry to come with a new proposal early next year.
Concerns have been raised over the summer on the potential impact of the uncertainty around the GCR on the gas market in 2019. This late acknowledgement that we have no deal and that one is not easy to reach has a sense of déjà vu.
Let’s break now for Christmas and wish that we will find a pragmatic solutions, that is good for the GB gas market, in 2019.
The Storengy Team