Gas Market Strategy

Our Gas Market Strategy team was established in January 2024, with our main objective being to develop and coordinate gas market engagement and drive action through the Gas Future Market Plan towards a decarbonised energy system.

Historically, networks for gas and electricity have been planned and developed separately.  Since the transition to NESO, we have adopted a strategic, long-term approach to the market. Our primary focus has been to identify whole energy system needs, to ensure that the system can be designed and built accordingly.

The first is to publish the Future Market Plan, which is a Licence Condition, and the second is to take responsibility for the Gas Advisory Council (GAC).

The Future Market Plan (FMP) is a publication for NESO to outline views on the future development of the gas market, setting out actions and projects to facilitate the transition of the gas market to a decarbonised energy system, and assessing the required transition for gas against the Future Energy Scenarios. 

The GAC was established to inform our approach to strategic gas market design based on robust evidence, international best practice, and the needs of and impacts on wider industry.  The GAC looks to provide strategic output on the future of gas markets to ensure they are affordable for consumers and considered across different molecular gases as well as being sustainable. 

The council is made up of experts from a wide range of industry groups and trade bodies across gas market value chains, including transport and storage providers, shippers and suppliers, consumers, and experts from trade associations.

Outputs from the GAC will feed into the Gas Future Market Plan which will set out the actions, projects and plans needed to transition the market and industry arrangements for gas, based on potential future scenarios for a decarbonised energy system. 

Gas Advisory Council

The FMP is led by Markets, with structured input from the GAC, and cross-functional NESO teams including Strategy & Policy, Strategic Energy Planning and Resilience and Emergency Management to ensure a whole-system perspective. The planned publication date is Summer 2026, subject to final confirmation with Ofgem.  The report is for both Ofgem and DESNZ to consider the recommended Actions and Plans contained within.

If you require any further information, please contact us on [email protected]