National Grid 2014 Annual Report Download - page 21
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Strategic Report Corporate Governance Financial Statements Additional Information
3.6 million
US gas customers
Pipeline shippers bring gas from
producers to suppliers, who in turn
sell it to customers.
We do not supply gas in the UK.
However, we own National Grid
Metering, which provides meters
and metering services to supply
companies, under contract.
In the UK, customers pay the
supplier for the cost of gas and
forits transportation. We transport
the gas through our network on
behalf of shippers, who pay us
transportation charges.
In the US, gas distribution
companies, including National Grid,
sell gas to consumers connected
totheir distribution systems.
In most cases in the US, where
customers choose National Grid,
they pay us for distribution and gas
costs. Where they choose to buy
gas from third parties, they pay us
for distribution only and pay the
third-party supplier for the gas and
upstream transportation capacity.
Also in the US, except for residential
consumers in Rhode Island,
customers may purchase their
supply from independent providers
with the option of billing for those
purchases to be provided by us.
31,145
new gas heating customers
in the US
In the UK, gas leaves the
transmission system and enters
thedistribution networks at high
pressure. It is then transported
through a number of reducing
pressure tiers until it is finally
delivered to consumers.
There are eight regional gas
distribution networks, four of which
are owned by National Grid. Our UK
distribution networks deliver gas to
around 10.9 million consumers.
In the US, gas is delivered by the
interstate pipeline companies to
local distribution networks. Each
local distribution company has a
geographically defined service
territory and is the only local
distribution company within that
territory. Local distribution
companies are regulated by the
relevant local state’s utility
commission.
Our US gas distribution networks
deliver gas to more than 3.6 million
customers.
For more information on
how we make money from
our regulated assets see
page 20
Distribution Supply
System operator
As system operator we are
responsible for the high pressure
gasNational Transmission System
(NTS) in Great Britain. We have
responsibility for the residual
balancingactivities on the NTS and
forkeeping the physical system
withinsafe operating limits.
Our price control, set by Ofgem,
includes incentives that aim to
maintainand improve our daily
operational efficiency and are subject
to renegotiation at set intervals.
19