All five of Great Britain’s gas networks are to leave trade body the Energy Networks Association (ENA) at the end of 2024, Utility Week can reveal.
The ENA said that “in view of the changing energy policy landscape” the gas networks had reviewed their membership and concluded “their interests are best served by leaving” the umbrella organisation.
The ENA will now launch a “strategic review” of its operations.
All four gas distribution networks – Cadent, Northern Gas Networks, SGN and Wales & West Utilities – and the gas transmission operator National Gas are currently members of the trade body, alongside all the electricity networks.
The ENA said there was unanimous agreement among the board that the an orderly transition was necessary. Therefore the gas networks will remain full members until the end of next year and “in the short term, ENA’s operations will continue unchanged”. The gas networks are understood to also be considering how best to represent their sector beyond 2024.
The trade body will now review its strategy and said it was also considering how to best handle National Grid electricity system operator (ESO)’s transition to the future system operator.
ENA chief executive Lawrence Slade said: “Twenty years after the association was established, the energy and political landscape has changed massively and continues to change. Following the decision of the gas networks and given the scale and importance of net zero, we will now undertake a strategic review to ensure that our team, who are at the heart of the organisation, have the best support and structure to help deliver the net zero future for the country.
“I’m confident that by working with our gas and electricity colleagues, and the great ENA staff team, to manage this transition carefully, we will deliver best value for all our members, stakeholders and customers involved now and in the future.”
The news comes amid uncertainty over the future role of gas networks with energy minister Lord Callanan repeating at the weekend that hydrogen “will not play a major role in home heating”, saying it was clear the “vast majority of decarbonisation of home heating in the UK will be electrification”. The government is due to make a final decision on the role of gas in heating by 2026. This is due to be informed by a hydrogen village trial. However, the sole contender for the pilot – Northern Gas Networks’ proposed project in Redcar – has yet to get the green light.
The ENA has led industry initiatives to promote hydrogen as a major source of domestic heating, through its Gas Goes Green initiative.
A statement issued on behalf of all gas networks said through projects such as Gas Goes Green the ENA had advanced the discussion about the role of biomethane and hydrogen in the decarbonisation of heat. However, it added “the size and scale of the energy transition now requires us to move away from the status quo so that we can focus our transformation activity to expedite the transition to net zero for our customers”.
The association’s chairman Phil Jones, who is also chief executive of Northern Powergrid, said the news did not change the commitment of the companies remaining as members.
He stressed: “We firmly believe that ENA is best placed to support us working together to enable net zero and tackle the challenges that lie ahead. That’s what ENA has enabled us to do as a sector consistently: deliver better outcomes for our customers across the board. Projects like the 105 three digit number for power cuts, industry-wide collaboration on storm and pandemic response and most recently some significant reforms in the connections framework.
“As we navigate the transition into the next chapter in the organisation’s history, I am confident the dedicated team at ENA will continue to support the networks to deliver for customers as we play our part in enabling net zero for the country.”