Issues Index

OXERA Report 2005

Oil & Gas UK Publishes OXERA report on the "Benefits of Providing near Real Time Gas Information

Oil & Gas UK has responded to Ofgem’s impact assessment on a proposal to publish near real time gas flow rates at UK Sub-Terminals - Modification Number 0727. Oil & Gas UK believes that it is premature to make any further changes to the publication of gas information before the current measures to improve information flow are complete. This is supported in an independent study by Oxera which also shows the proposal could add to price volatility and increase consumer prices.

The voluntary agreement between DTI, Oil & Gas UK, Transco and Ofgem negotiated in 2003/4 has already resulted in a significant increase to the quantity and quality of information provided to the gas market. However, it will only be completed in July this year with the publishing of near real time gas flows into the NTS aggregated on a north south basis. Ofgem’s impact assessment indicates that even if further changes are agreed, they will not be ready for this winter, nor most probably winter 2006/7.

For some time Oil & Gas UK has noted the lack of an in-depth analysis into the overall benefits of providing more information about UK gas production. To promote a more informed debate, Oil & Gas UK has commissioned OXERA to conduct an independent review of the subject.

Click here to view a copy of OXERA’s report: The costs and benefits of near real-time gas information.