Ofgem has opened a new consultation regarding proposed modifications to Special Condition 3.21 of the gas transporter licence, aimed at introducing greater flexibility for biomethane connection funding across corporate groups.
Published on 10 August 2026, the consultation focuses 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 are designed to implement recent updates made 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.
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.
The consultation is currently open and will close on 7 September 2026. Interested parties can submit their responses via email to RIIO3@ofgem.gov.uk.
