DESNZ has published the outcome to the consultation which outlined proposed changes to the economic regulatory framework to best suit the needs of 100% hydrogen pipeline networks, established under the Gas Act 1986. Responses were received from a range of organisations, including hydrogen producers, transporters, trade associations, investors and research bodies. The majority of consultation responses supported these proposals.
The government response confirms the intention to establish an effective economic regulatory framework for hydrogen pipeline networks through legislation, licences, and a new hydrogen network code.
This framework will aim to provide regulatory clarity, support investment, and ensure the safe and efficient operation of early hydrogen pipeline networks through:
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maintaining existing licence structures for primary and residual balancing
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assigning the role of System Operator to hydrogen transporters
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exempting hydrogen supply to premises from supplier licence requirements, keeping this under review as networks develop
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the development of a new hydrogen network code
Source: DESNZ.