The U.K. government has finished writing operating rules and license terms for independent gas suppliers' use of the British Gas plc gas distribution system.
The government also delayed start-up of a pilot program for the liberalized residential gas market.
Meantime, British Gas and prospective gas suppliers have signed an agreement to supply customers operating under the Network Code, which defines the rights and responsibilities of British Gas and gas shippers.
The Transco unit of British Gas, which operates the gas distribution grid, said the code will allow licensed shippers open and equal access to 267,000 km of pipeline.
Transco said the code, effective Mar. 1, mainly aims to ensure that:
- Safety and security of supply are not jeopardized.
- Transco does not discriminate in meeting requirements of pipeline users.
- Prices reflect the cost of distribution.
- Gas shipments are balanced daily.
- Shippers are responsible for balancing their own inputs and outputs.
- The network is supported by "huge, robust, industry-wide computer information systems."
The huge computing requirement to operate the network code caused the delay in starting a pilot program designed to supply gas to 500,000 homes in Southwest England.
After a meeting among Transco, new gas suppliers, and government regulator Office of Gas Supply (Ofgas), start of the program was delayed to Apr. 29 from Apr. 1.
An Ofgas official said the postponement was needed to allow more time for testing of the network's computer systems. These were originally intended to be fully operational by Oct. 1, 1995.
The Department of Trade & Industry announced that it had completed its standard conditions for licenses that will be needed by companies intending to supply customers under the free market regime.
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