We are incentivised on reducing the quantity of greenhouse gases emitted from our compressors, which represent the most significant source of methane venting on the gas network.

During the commissioning, operation, maintenance, and decommissioning of assets on the National Transmission System (NTS), it is sometimes necessary to release methane, a potent greenhouse gas into the atmosphere. 

How the GHG Emissions incentive works 

Each compressor unit on the NTS has unique characteristics, including the usage requirements and extent to which gas is inherently released or periodically vented during operation, maintenance or safety and emissions compliance. 

The current Greenhouse Gas Compressor Emissions incentive compares actual venting quantities against a defined annual allowance of starting at 2,156 tonnes in 2026/27 decreasing 75 tonnes each year to 1,856 in 2030/31. 

It includes a cap and collar of +/-£2.0m, and a deadband of +/-100 tonnes, meaning we can earn revenue by venting below the annual target allowance minus deadband. Or incur penalties for venting above the annual target allowance plus deadband. Therefore in 2026/27 we would incur zero reward or penalty if venting is between 2056 and 2256 tonnes.

Improving Our Performance

We continue to investigate alternatives to venting natural gas. This could help to reduce emissions from assets such as compressors and chromatographs, while taking into account the operational and mandatory maintenance requirements associated to these assets.