Each participating green gas producer registers the amount of biomethane it has injected to the grid, on a quarterly basis, based on the actual volume and CV of green gas that flowed. Registration is based on an independent meter reading. Meters are generally the property of the relevant gas distribution company (GDN) . Each producer then registers the details of the supplier or other trader it has contracted with to sell the unit(s) of injected gas. (This would normally be by means of a Gas Purchase Agreement.)
In future, producers will have the option to request that we notify them of any unmet demand for green gas from suppliers or consumers. The system will allow this to happen in future.
Though a very important element of the GGCS, participating Gas Distribution Network Operators (GDNs) are not required to register on the system. So long as producers can show the auditor acknowledgement from the GDN that the registered biomethane has been injected into the distribution network, no further confirmation on the system is required in real time.
Gas shippers underpin the GGCS but do not participate directly in it since they facilitate the physical rather than the contractual flow of the gas. Biomethane canot be injected into the distribution network unless the producer has also arranged for it to be ‘shipped’ (or introduced into the network). Licensed gas suppliers and traders are also gas shippers. In practice, they will arrange to ship any gas they buy (introduce it into, move it through or take it out of the system).
There may even be two different shippers, though this is rare. Under this scenario, the gas producer would introduce under one shipper, and then pass the title of the gas to the second shipper at the supply point.
‘Non-shipper’ bodies that participate in the GGCS can contract directly with a green gas producer to buy the gas, but they must also arrange for a shipper to ‘ship’ the gas as outlined above. This need not be the same shipper that ships the conventional gas they purchase.
A large organisation, for example, that is not a licensed gas supplier, may participate in the GGCS directly as a ‘trader’. In this way, it will contract directly with a green gas producer to buy the gas, and arrange for it to be shipped. (This need not be by the same shipper that ships the natural gas the consumer buys.)
Each participating gas supplier or other trader must acknowledge a transaction with the producer registered to their account . The amount is based on the actual volume of green gas that flowed.
The supplier or other trader must register each k Wh, or sequence of k Whs, of green gas it has contracted to sell. This can be to another supplier or trader, or, in the case of a licensed gas supplier to an end-use consumer or group of consumers. If the sale is to another supplier or trader, they will be required to acknowledge a transaction registered to their account. They must then register each kWh or sequence of kWhs of green gas they sell, either to another supplier or trader, or in the case of a licensed gas supplier to an end-use consumer, or group of consumers.
The licensed gas supplier registers the sale of green gas to a consumer / group of consumers it has contracted with. The supplier or other trader thus guarantees to the consumer(s) that, for each unit of gas they buy , an equivalent amount of authentic green gas has been injected into the network, and that it has not been sold to anyone else.
In future, suppliers and other traders will have the option to request that we notify them of any unsold green gas being injected into the grid by producers. The system will allow this to happen in future.
An end-use consumer is any-one with a gas meter through which they can consume gas. End-use consumers may be commercial or not-for-profit entities, such as housing associations or communities, or they may be domestic households or a group of households who have signed up to a particular ‘green tariff’. Once the supplier has registered a sale to a consumer / number of consumers, the GGCS IS system will automatically generate a certificate in each consumer’s name with the relevant RGGOs listed. The GGCS system will then retire the relevant RGGOs from the system and log them as having been sold to that consumer, or group of consumers.
In future, suppliers may decide to offer domestic consumers a tariff that is made up of a proportion of green gas only. In such a case only the green gas element supplied will be registered on the system. In practice, it is likely that the green gas will not be registered to that tariff until after the end of the year when the precise amount of gas consumed can be settled.