Ofgem published a Call for Input on 13 January 2025 reviewing the gas disconnections framework for domestic and small business consumers, with responses due by 7 March 20251. The document, numbered OFG1164, was issued by the regulator's Access and Connections, Gas Systems and Operations Unit1. Ofgem defines small businesses for this purpose as those with an annual gas consumption of not more than 500,000 kWh1.
The review covers two separate disconnection routes. A "voluntary disconnection" is carried out at the consumer's request and is not required under health and safety legislation; gas distribution networks charge a reasonable and cost reflective charge for it1. A "health and safety disconnection" is required under legislation including the Gas Safety Installation and Use Regulations 1998, the Pipeline Safety Regulations 1996 and the Gas Safety (Management) Regulations 1996, and networks cannot charge customers for this work, including the disconnection and capping of pipes 12 months after any meter has been removed1.
Ofgem sets out cost figures for voluntary disconnections across Great Britain1:
| Year | Average voluntary disconnection price |
|---|---|
| 2019 | £1,546.90 |
| Current | approximately £1,950 |
| 2030 (projected) | approximately £2,300 |
The 2019 figure is an average across all types of standard disconnection charges as detailed by the gas distribution networks in their Connection Charges Statements, deflated to 2019 prices to exclude inflation1. Ofgem says it expects rates to increase in the coming years regardless of inflation1.
The Call for Input states that consumer groups have reported many domestic consumers waiting to disconnect through the health and safety route to avoid the charges, and that according to industry these costs are ultimately passed onto other customers through network charges, leading to higher household bills for those that remain on the network1. Ofgem says it intends to investigate this further and to understand to what extent it extends to small business consumers1. It also cites reports that consumers struggle to understand the framework because two alternate processes exist in legislation and clear guidance is absent1.
"This Call for Input kickstarts that review by seeking stakeholder views on the current framework and potential future regulatory frameworks that may operate more effectively, assist in achieving net zero and protect consumers."
Ofgem's stated principal objective is to protect the interests of existing and future gas and electricity consumers, including their interests in the Government's compliance with the net zero target for 2050 and five-year carbon budgets1. The framework sits within the Gas Act 1986 and related licences and industry codes, which Ofgem monitors and enforces1. The four gas distribution networks named are Cadent, Northern Gas Networks, SGN and Wales and West Utilities1.
Why it matters for households
A household that switches to a heat pump or another low carbon heat source and no longer uses gas still faces a choice over its gas supply. Leaving the meter in place means continuing to pay standing charges for a supply that is not used; removing it means a disconnection, and the figures above show what that has cost and may cost. The two routes carry different charges, and Ofgem says the difference between them is not clearly explained to consumers1. The cost of health and safety disconnections, which networks cannot charge for, is according to industry recovered through network charges and so falls on remaining customers, a point Ofgem says it will examine1. Ofgem also warns that if disconnection prices continue to outstrip inflation, those wishing to disconnect may be deterred from switching to a heat pump or other technologies, and that if rising health and safety disconnection costs are spread across a declining consumer base, the impact of higher bills may be felt most acutely by those last to transition off the network, including vulnerable consumers who may not be able to afford electrification1. The detail of how disconnection, warrants and forced prepayment installation are handled sits alongside this review.
What happens next
Responses to the Call for Input are due by 7 March 2025, sent to gas.systems@ofgem.gov.uk1. Ofgem states that questions 1 to 10 are drafted for a general audience, while questions 11 to 35 are relevant only to Gas Distribution Networks, Independent Gas Transporters and Utility Infrastructure Providers1. The review sits within the current gas distribution price control period, GD2, which runs from 1 April 2021 to 31 March 2026; the following period, GD3, runs from 1 April 2026 to 31 March 20311. No date for publication of a decision or further consultation has been reported.