UK non-commodity charge · Distribution · Gas
LDZ capacity charge (gas)
Latest published rate, who sets it, and where it is forecast to go.
What LDZ capacity charge (gas) is, who sets the rate, what the revenue funds and where it is heading. Rates come from the Purely Energy non-commodity cost data hub; forecasts are our own.
LDZ capacity charge (gas): what it is, who charges it, and what it pays for
What it is
The LDZ capacity charge (gas) charge in plain English
Charge based on your peak daily gas demand, not annual consumption. Calculated as p/kWh/day × peak day demand. Sites with peaky usage (low load factor) pay more per kWh than sites with flat, even consumption. This is why load factor matters for gas NCC costs.
Introduced 1996 (gas market liberalisation).
Who charges it
The body that sets the rate
Your regional gas distribution network (Cadent, Northern Gas Networks, SGN or Wales & West Utilities) under Ofgem's RIIO-GD3 price control (from April 2026)
Unit
p/kWh/day
Applies to
All gas supplies (rate varies by local distribution zone)
What it pays for
Where the revenue ends up
Reserving gas distribution capacity for your peak demand day
Forecast trajectory
Forecasts from our non-commodity cost model. P10, P50 and P90 are the 10th, 50th and 90th percentile outcomes; P50 is the central estimate.
| Year | P10 | P50 | P90 | Confidence | Rationale |
|---|---|---|---|---|---|
| 2026-27 | 0.2000 | 0.2200 | 0.2400 | high | RIIO-GD3 draft determinations provide regulatory framework |
| 2027-28 | 0.2200 | 0.2367 | 0.2550 | high | Second year of established price control with known methodologies |
| 2028-29 | 0.2300 | 0.2534 | 0.2800 | med | Demand decline effects begin, tariff reform timing uncertain |
| 2029-30 | 0.2500 | 0.2890 | 0.3300 | med | Accelerating demand decline, regulatory uncertainty increases |
| 2030-31 | 0.2800 | 0.3380 | 0.4000 | low | End of RIIO-GD3, post-2030 framework unknown |
| 2031-32 | 0.3000 | 0.3930 | 0.5000 | low | RIIO-GD4 assumptions speculative, demand decline accelerating |
| 2032-33 | 0.3200 | 0.4565 | 0.6200 | low | Hydrogen policy undefined, customer disconnection risks |
| 2033-34 | 0.3800 | 0.5642 | 0.7800 | low | Potential tipping point effects, regulatory intervention likely |
| 2034-35 | 0.4500 | 0.7447 | 1.000 | low | Extreme uncertainty, alternative scenarios possible |
LDZ capacity charge (gas) FAQs
What is the LDZ capacity charge (gas) charge?
Charge based on your peak daily gas demand, not annual consumption. Calculated as p/kWh/day × peak day demand. Sites with peaky usage (low load factor) pay more per kWh than sites with flat, even consumption. This is why load factor matters for gas NCC costs.
Who sets the LDZ capacity charge (gas) rate?
The LDZ capacity charge (gas) rate is set by Your regional gas distribution network (Cadent, Northern Gas Networks, SGN or Wales & West Utilities) under Ofgem's RIIO-GD3 price control (from April 2026).
What does LDZ capacity charge (gas) pay for?
LDZ capacity charge (gas) revenue supports Reserving gas distribution capacity for your peak demand day.
What is the LDZ capacity charge (gas) rate?
LDZ capacity charge (gas) is set by your regional network operator, so there is no single national rate. Use the NCC calculator with your MPAN or postcode to see the rate for your region.
What is the LDZ capacity charge (gas) forecast?
Our latest forecast for 2026-27 is 0.2200 p/kWh/day (high confidence). RIIO-GD3 draft determinations provide regulatory framework
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Rate data from the Purely Energy non-commodity cost data hub (dh.purelyenergy.co.uk). Published rates come from statutory publications by the body listed above; forecasts are modelled from published guidance and market trends, so treat P50 as a central estimate and use P10/P90 for sensitivity.