Cost and Performance report for gas distribution companies published

Our first Cost and Performance Report for Gas Distribution Network (GDN) companies is published today.

This report outlines our assessment of how GDNs have performed over the GD14 price control period of 1 January 2014- 31 December 2016 against price control allowances and targets.

There are three GDNs in Northern Ireland: firmus energy (FE), Phoenix Natural Gas Limited (PNGL) and SGN.  FE own and operate the distribution network in the area called the ‘ten towns’.   PNGL own and operate the distribution network in the Greater Belfast, Larne and East Down. SGN was awarded a licence in February 2015 and have commenced building the distribution network in the area referred to as ‘Gas to the West’ area.

We report on FE and PNGL costs and performance over the period.  SGN has only recently commenced operations and, although we do not report its costs and performance in this publication, we consider factors which will impact on SGN going forward.  We will be reporting on its costs and performance in future publications.

While the report provides a detailed commentary, we are overall pleased with the progress made by the GDNs over the GD14 price control period.  All GDNs have made a positive contribution to the ongoing development of the gas industry in Northern Ireland.  Key metrics on this include:

•    Approximately 41,000 new gas connections over the price control period;
•    Just under a quarter of a million gas customers connected in the GD14 period;
•    A further 50,000 new properties were passed during GD14;
•    Over 4,000km of gas pipeline has been laid; and
•    Work commenced in the Gas to the West Area- reaching new areas of the province.

If GDNs continue to develop the network as envisaged for GD17, around 60% of consumers in Northern Ireland, will have access to a gas connection.

Copies of the documents can be made available in large print, Braille, audio cassette and a variety of relevant minority languages if required.