National Grid: incentivise connecting communities to gas grid

The Fuel Poor Network Extension scheme should incentivise gas distribution networks (GDNs) to connect communities to the grid over individual properties, National Grid Affordable Warmth Solutions (National Grid AWS) has said.

It has also called for a “collaborative, coordinated approach” to tackling fuel poverty by connecting homes to the grid by allowing greater alignment between the incentive scheme for networks and the funding provided by government for energy efficiency improvements in the home.

The community interest company, set up by National Grid in 2008 to deliver its core objectives, said Ofgem should distinguish between types of connection in the scheme as some are more costly.

National Grid AWS managing director Jeremy Nesbitt said: “I would strongly argue that the greatest impact is on community homes and maybe the scheme should recognise the fact that community schemes are more expensive to deliver.”

Nesbitt has also called for funding for central heating systems in homes newly connected to the gas-grid to be “ring-fenced” in any scheme that replaces the Energy Company Obligation.

He said: “Although investment is made in new gas infrastructure to take gas to homes, the householder is still left with the issue of how do they fund and install the heating system”.

The company has been instrumental in setting up a mapping tool designed to allow companies to identify potential homes to connect to the gas grid.

But Nesbitt said the tool is also helpful in the transition towards low carbon heating by allowing “targeted investment” by companies in alternative solutions, such as heating networks.

Nesbitt said: “The map doesn’t just provide gas solutions, it provides whole industry solutions”.

Energy minister Lord Bourne announced in January that a single scheme to replace both ECO and the now defunct Green Deal would not be set out until 2018 but will include a supplier obligation costing £640 million.