Ofgem Rejects UNC0843 Independent Shrinkage Charge Modification
Summary
Ofgem has rejected modification proposal UNC0843, which sought to establish an Independent Shrinkage Charge and Independent Shrinkage Expert for Gas Distribution Networks. The proposal was submitted by OVO Energy in September 2025 with the aim of incentivizing emissions reductions on gas distribution networks. The Authority's decision means the modification will not be implemented.
What changed
Ofgem has rejected UNC0843, a Uniform Network Code modification that would have introduced an Independent Shrinkage Charge and Independent Shrinkage Expert role. The proposal, submitted by OVO Energy in September 2025, aimed to create financial incentives for reducing gas shrinkage (unaccounted for gas losses) on Gas Distribution Networks. The Authority's rejection means the modification will not proceed as proposed.\n\nAffected parties including gas distribution network operators and energy suppliers should note that the proposed framework for independent oversight of shrinkage management will not be implemented at this time. Industry participants should continue to operate under existing network code provisions regarding gas shrinkage and emissions management.
What to do next
- Monitor for future modification proposals on gas network emissions
- Review current shrinkage management practices for compliance
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Apr 15, 2026GovPing 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.
UNC0843 Uniform Network Code proposed changes
Publication type: Code modification Publication date:
15 April 2026
Topic: Gas distribution Print this page
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- Outcome of proposed changes to Uniform Network Code, UNC0843 Establishing the Independent Shrinkage Charge and Independent Shrinkage Expert.
Details of outcome
The Authority has decided to reject modification proposal UNC0843: Establishing the Independent Shrinkage Charge and Independent Shrinkage Expert.
Start date
Not applicable.
Code modification description
On September 2025, OVO Energy submitted the modification to introduce an Independent Shrinkage Charge and Independent Shrinkage Expert. The purpose of the proposal was to incentivise the reduction of emissions on the Gas Distribution Networks (GDNs).
Documents
UNC 0843 - Establishing the Independent Shrinkage Charge and the Independent Shrinkage Expert (UNC0843) [PDF, 211.32KB] UNC 0843 appendix - Establishing the Independent Shrinkage Charge and the Independent Shrinkage Expert - analysis report [PDF, 262.45KB] Print this page
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