Citizens Advice response to Ofgem’s Natural Gas asset repurposing valuation methodology consultation
Citizens Advice is pleased to respond to Ofgem’s consultation on the valuation methodology for repurposing natural gas assets. As the UK moves towards net zero, it is vital that the transition costs are shared equitably across society. An important part of this is how to fairly distribute the costs of repurposing and decommissioning gas assets.
We believe the valuation methodology for repurposing gas assets must strike a fair balance between gas and hydrogen consumers. Gas consumers have paid for gas assets and are entitled to full compensation if assets are repurposed. At the same time, it is important that hydrogen consumers do not re-pay for assets that have already been funded, and that the price paid for repurposed assets reflects the utility of the asset they inherit. Attention also needs to be given to how this consultation interacts with wider decisions around how decommissioning costs should be distributed.