Ofgem on October 22 approved an agreement intended to stop a further planned reduction in Great Britain’s ability to import gas through its pipeline link with Belgium, and opened a consultation on letting National Gas Transmission recover the cost from gas customers. The regulator estimates the cost at under 10p a month per domestic gas customer over five years.

The agreement is between Interconnector Limited, which operates the Great Britain–Belgium interconnector, and National Gas Transmission plc (National Gas), which owns and operates the National Transmission System. Ofgem approved it under Interconnector Limited’s license; the regulator’s public register lists it as an Import Capacity Availability Agreement. Ofgem said National Gas facilitated the deal after a system-wide assessment of risks and responses, to prevent a further planned cut in capability and keep the import option open over coming winters.

Why import capability has fallen

Britain’s continental European gas interconnectors are undersea pipelines linking it to the Belgian and Dutch gas markets, with gas able to flow in either direction. Ofgem said they are rarely used for imports but are an important option at times of very high demand, such as severe winter weather. Import capability through them has fallen in recent years because of weaker commercial incentives for European imports and specific technical capacity reductions, the regulator said.

In notes to its release, Ofgem said domestic production is falling and some European import infrastructure has reduced capability. It described the step as precautionary, saying the gas system operates reliably and is expected to meet normal demand. Maintaining import capability does not buy gas or guarantee flows, Ofgem said; it preserves an option where gas is available.

The decision is tied to the gas security framework. Under UK law, that framework tests whether enough supply would remain in rare, challenging scenarios, such as the loss of a major gas source combined with a 1-in-20 chance of extreme cold, according to Ofgem. The N-1 infrastructure standard is set out in UK legislation, and the regulator said interconnector imports strengthen resilience in those cases.

Who pays

The statutory consultation proposes changes to National Gas Transmission’s license so that it can recover the costs of keeping, and where appropriate restoring, gas import capability from continental Europe. Ofgem had already allowed National Gas to enter agreements with one or both continental interconnectors, but “these decisions do not provide National Gas with a way to recover the associated costs from consumers,” the consultation page says.

Ofgem puts the expected bill impact at about £1.19 per gas customer per year over five years. Charges would be recovered through the gas General Non-Transmission Services charge, which only gas consumers pay, so customers without gas would not be affected. The consultation documents include an impact assessment and draft versions of the RIIO-GT3 gas transmission financial model and financial handbook.

Ofgem said approving the agreement does not prejudge the consultation or the final decision on the license changes. It added that the mechanism could also support similar arrangements with other continental interconnectors, which would be assessed separately and would need their own approvals.

Jack Presley Abbott, Ofgem’s director of energy systems management and security, said: “Britain’s gas system remains secure and continues to deliver the energy that homes and businesses rely on every day.” He added: “We are now seeking views on the proposed funding arrangements before taking a final decision.”

Glenn Bryn-Jacobsen, director of energy systems and resilience at National Gas, said: “Britain’s energy system is changing, with patterns of gas demand and supply evolving over time.” He said recent joint analysis had found some very unlikely, high-impact stress scenarios in which extra resilience could help. Energy Minister Michael Shanks said Britain has “one of the most secure and resilient energy systems in the world.”

Why it matters

For gas shippers, suppliers and large users, the decision keeps a physical route for continental supply available during peak demand, at an estimated cost to households of under 10p a month. Ofgem framed it as preserving flexibility as supply patterns shift, rather than as a response to a current shortfall.

The move also sets a funding route that does not yet exist. Without the license change, National Gas would have no mechanism to recover the cost of agreements it has been allowed to make, according to the consultation page. Ofgem placed the step alongside wider government and industry work on further interventions and long-term investment.

What to watch

The consultation closes on Friday, November 20, 2026, after which Ofgem will take a final decision on the license modifications. Any similar agreement with another continental interconnector would be assessed separately.

The caveats

Ofgem’s release does not say how much import capability has been lost, how large the avoided reduction would have been, or the total cost of the agreement in pounds. It also does not name the physical changes involved at either end of the pipeline.