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IGT165 Rejected - Independent Shrinkage Expert and Independent Shrinkage Charge

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Summary

Ofgem has rejected modification proposal IGT165, which would have introduced an Independent Shrinkage Expert and Independent Shrinkage Charge to the IGT Uniform Network Code. The proposal was submitted by OVO Energy in September 2025 to incentivise emissions reductions on Independent Gas Transporter networks. Ofgem's decision concludes the modification assessment process without adopting the proposed changes.

What changed

Ofgem has rejected modification proposal IGT165, which sought to establish an Independent Shrinkage Expert and Independent Shrinkage Charge within the IGT Uniform Network Code. The proposal, submitted by OVO Energy in September 2025, aimed to create financial incentives for reducing gas shrinkage (unaccounted-for gas losses) on Independent Gas Transporter networks.

Affected parties including IGT network operators and gas shippers will not face new obligations under this proposal. The rejection means the current UNC arrangements remain unchanged. Industry participants should note Ofgem's preference for maintaining existing shrinkage management frameworks rather than introducing new expert-based mechanisms or separate charge structures at this time.

What to do next

  1. Monitor for future IGT code modification proposals

Archived snapshot

Apr 15, 2026

GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.

IGT165 Uniform Network Code (UNC) proposed changes

Publication type: Code modification Publication date:

15 April 2026

Topic: Gas supply Print this page

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  • Outcome of proposed changes to IGT Uniform Network Code, IGT165 Establishing the Independent Shrinkage Charge and Independent Shrinkage Expert.

Details of outcome

The Authority has decided to reject modification proposal IGT165: Independent Shrinkage Expert and Independent Shrinkage Charge.

Start date

Not applicable.

Code modification description

On September 2025, OVO Energy submitted the modification to introduce an Independent Shrinkage Expert and Independent Shrinkage Charge. The purpose of the proposal was to incentivise the reduction of emissions on the Independent Gas Transporter (IGT) networks.

Documents

IGT UNC 165 - Independent Shrinkage Expert and Independent Shrinkage Charge [PDF, 209.04KB] IGT UNC 165 appendix - Independent Shrinkage Expert and Independent Shrinkage Charge - analysis report [PDF, 326.37KB] Print this page

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Last updated

Classification

Agency
Ofgem
Published
April 15th, 2026
Instrument
Notice
Legal weight
Non-binding
Stage
Final
Change scope
Minor

Who this affects

Applies to
Energy companies
Industry sector
2111 Oil & Gas Extraction
Activity scope
Gas network regulation Code modification Emissions management
Geographic scope
United Kingdom GB

Taxonomy

Primary area
Energy
Operational domain
Compliance
Topics
Environmental Protection

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