As National Grid does not own or operate the majority of the measurement equipment at NTS entry and exit points the level of direct control National Grid has over volumes of Unaccounted for Gas is low. Ofgem recognised the difficulty this would present in indentifying an appropriate volume target for a financial incentive and hence introduced a reputational incentive from April 2012. This will continue from 01 April 2013 until 31 March 2021 and requires National Grid to report on its work to indentify the causes of Unaccounted for Gas in the gas transmission system, report volumes of Unaccounted for Gas, and the witnessing of the validation of measurement equipment by the asset owners.
We also hold industry forums with our stakeholders to help indentify the solutions to reduce Unaccounted for Gas and the most appropriate way to implement these solutions and are required to report on this interaction.
The reports can be viewed here