Hydrogen Economic Regulatory Framework
This consultation is open for responses
Respond to this consultationSummary
DESNZ proposes a new regulatory framework for 100% hydrogen pipeline networks under the Gas Act 1986, covering economic regulation for hydrogen transport infrastructure. The consultation runs until an unspecified date and seeks views on implementation through legislation, licences, and codes. This targets hydrogen for industrial decarbonisation and heavy transport, not electricity generation.
Why it matters
This creates parallel infrastructure regulation for hydrogen networks, establishing a new regulated asset base separate from electricity. As such, it redistributes costs within the hydrogen value chain rather than addressing electricity supply or market structure.
Key facts
- •Framework applies to 100% hydrogen pipeline networks
- •Uses Gas Act 1986 as legislative basis
- •Targets industrial decarbonisation and heavy transport
- •Implementation through legislation, licences, and codes
Areas affected
Related programmes
Memo
This consultation sets out proposed changes to the economic regulatory framework to best suit the needs of 100% hydrogen pipeline networks, established under the Gas Act 1986. We are seeking stakeholder views on this proposed approach and any further evidence to support decisions and subsequent implementation through legislation, licences, and codes. The economic regulatory framework is an important enabler for the low carbon hydrogen economy. Low carbon hydrogen can support the decarbonisation of dispatchable power, hard-to-electrify parts of the UK industrial sector and heavy transport, such as aviation and shipping. The consultation is open to all, but of particular relevance to hydrogen producers, hydrogen users, gas transporters, gas shippers, storage operators, project developers, trade associations, consumer champions, academia, policy think tanks, prospective investors or investment bodies.