Cadent’s gas network
There are eight gas distribution networks (GDNs), each of which covers a separate geographical region of Great Britain. Cadent owns and manages the following networks
- West Midlands
- North West England
- East of England
- North London
The other four networks are owned and managed by the following companies:
- Northern Gas Networks – North East England (including North East, North, West and East Yorkshire and Northern Cumbria)
- Wales & West Utilities – Wales and South West England
- SGN – Scotland and Southern England (including South London)
In addition there are a number of smaller networks owned and operated by Independent Gas Transporters. These are located within the areas covered by the GDNs.
Since GDNs are natural monopolies they are regulated by Ofgem. For GDNs to legally distribute gas through the systems they must hold a Gas Transporter Licence. The licences contain conditions which, among other things, limit the amount of revenue which these companies can recover from their customers.
Who supplies gas?
The role of Cadent and other distribution network companies is to transport gas through their pipelines to your property.
Cadent does not sell gas.
The gas in your home or business is supplied to you by a Gas Supplier. Only suppliers licensed by Ofgem (Office of Gas and Electricity Markets)can sell you gas. You can get more information about who supplies gas in your area from the Energy Networks Association website.
Who pays for what?
Gas producers and importers sell gas to licensed shippers who then own the gas as it travels through the network of transmission and distribution pipes.
Shipping involves buying gas from producers, arranging for it to be conveyed to supply points via the NTS (National Transmission System) and selling it to gas suppliers. We are not a gas shipper.
Shippers pay National Grid to run their gas through the national transmission network and LNG importers pay for the right to land LNG at the importation terminals.
Shippers also pay National Grid and other gas distribution network operators to transport their gas to homes and businesses. These charges are passed on to consumers and reflect the cost of building, maintaining and operating the networks and running a 24-hour gas emergency helpline.
Gas consumers – homes and businesses throughout the UK – have many gas supply companies to choose from. The supply companies pay the gas shippers who buy gas and arrange for it to be transported.