Ofgem launches consultation on flexible funding rules for biomethane connections

Published on 10 August 2026, this consultation proposes modifications to Special Condition 3.21 of the gas transporter licence to introduce greater flexibility for biomethane connection funding across corporate groups.

About the consultation

The focus is on shifting network-level Biomethane Connections Use It or Lose It (UIOLI) funding allocations to corporate-level allocations specifically for Cadent and SGN. The proposed changes aim to implement recent updates to the Biomethane Connections UIOLI governance document.

If approved, the modifications will allow unused funding for biomethane connections to be reallocated between individual gas networks operating within the same corporate group.

Stakeholders

The regulatory body is seeking feedback from gas distribution and transmission network operators, as well as any stakeholders with an interest in the RIIO-3 price control.

Timeline

The consultation is currently open and will close on 7 September 2026.

How to respond

Interested parties can submit their responses via email to RIIO3@ofgem.gov.uk.

Author: Mark Selby