Ofgem approves plan to preserve gas import capacity through European link

Britain’s energy regulator Ofgem approved an agreement on 22 October between National Gas Transmission and Interconnector Limited, the operator of the Belgium link. The arrangement is intended to prevent a further reduction in gas import capability into Great Britain.

Ofgem describes continental interconnectors as undersea pipelines that can carry gas in either direction depending on supply and demand. The links are used only occasionally to import gas into Great Britain, but can add flexibility during periods of high demand or severe winter weather.

The regulator said available import capability has declined in recent years because of weaker commercial incentives and technical reductions. The approved agreement is intended to prevent another planned cut in the capacity available through the link.

Ofgem also opened a consultation on licence changes and financial arrangements that would let National Gas recover the cost of maintaining that option. The consultation closes on 20 November 2026; Ofgem has not yet made a final decision on the licence changes.

The expected cost is less than 10 pence per month per domestic gas customer over five years, or about £1.19 per year. Customers who do not use gas would not pay; the cost would be collected through a gas-network charge.

Ofgem stressed that the arrangement does not buy gas or guarantee that gas will be available or flow through the pipeline. It is designed to preserve an import option for rare stress scenarios, such as the loss of a major supply source combined with extreme cold.

The policy addresses an infrastructure option rather than a forecast of routine flows. The pipelines connect Britain with the Belgian and Dutch gas markets, and their ability to reverse direction means they can support imports when European supply is available and market conditions favour delivery. The announcement gives no pipeline-volume target and does not quantify the capacity reduction it seeks to avoid.

The funding proposal would be recovered only from gas customers through the General Non-Transmission Services charge. Ofgem estimates an impact of about £1.19 per gas customer each year for five years, expressed elsewhere in its release as less than 10 pence a month. Electricity-only households are outside that charge. The regulator says the expected contribution buys continued access to infrastructure, not a guaranteed quantity of gas.

Ofgem frames the rationale around the statutory N-1 security standard, which tests whether the system can meet demand after the loss of its largest infrastructure source under severe conditions. Its stated example combines the loss of a major gas supply source with a one-in-20 chance of extreme cold. This is a resilience scenario used for planning, not a statement that either event is expected this winter.

The sequence of decisions matters: the operator agreement has regulatory approval, while the mechanism for recovering its cost remains under consultation. Ofgem says the approval does not prejudge the final licence modification. Responses are due by 20 November 2026, after which the regulator must decide whether to change the licence and how the proposed funding terms should operate.