UK non-commodity charge · Distribution · Gas
LDZ commodity charge (gas)
Latest published rate, who sets it, and where it is forecast to go.
What LDZ commodity 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 commodity charge (gas): what it is, who charges it, and what it pays for
What it is
The LDZ commodity charge (gas) charge in plain English
The largest gas distribution charge. Volumetric rate for gas flowing through your Local Distribution Zone. Varies significantly by LDZ region, e.g. Scotland is typically cheaper than London. Set by your regional GDN under Ofgem RIIO-GD2.
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
Applies to
All gas supplies (rate varies by local distribution zone)
What it pays for
Where the revenue ends up
Local gas distribution pipes from the NTS to your meter (low/medium pressure)
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 | 0.3670 | 0.4590 | 0.5510 | med | RIIO-GD3 implementation with established regulatory framework but methodology uncertainty |
| 2027-28 | 0.4300 | 0.5740 | 0.7180 | med | First full year RIIO-GD3 with stranding risk provisions but regulatory uncertainty |
| 2028-29 | 0.5210 | 0.7440 | 0.9670 | low | Demand destruction effects from heat pump deployment with technology advancement risks |
| 2029-30 | 0.6510 | 1.002 | 1.353 | low | Compounding volume decline effects with widening regional variations |
| 2030-31 | 0.8600 | 1.433 | 2.006 | low | Severe unit cost escalation from 25-30% demand reduction, stranded asset risk |
| 2031-32 | 0.9500 | 1.900 | 2.850 | low | Placeholder estimate dependent on future regulatory actions and market conditions |
| 2032-33 | 1.000 | 2.000 | 3.000 | low | Highly uncertain, subject to regulatory intervention or methodology reform |
| 2033-34 | 1.000 | 2.000 | 3.000 | low | Highly uncertain, subject to regulatory intervention or methodology reform |
| 2034-35 | 1.000 | 2.000 | 3.000 | low | Highly uncertain, subject to regulatory intervention or methodology reform |
LDZ commodity charge (gas) FAQs
What is the LDZ commodity charge (gas) charge?
The largest gas distribution charge. Volumetric rate for gas flowing through your Local Distribution Zone. Varies significantly by LDZ region, e.g. Scotland is typically cheaper than London. Set by your regional GDN under Ofgem RIIO-GD2.
Who sets the LDZ commodity charge (gas) rate?
The LDZ commodity 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 commodity charge (gas) pay for?
LDZ commodity charge (gas) revenue supports Local gas distribution pipes from the NTS to your meter (low/medium pressure).
What is the LDZ commodity charge (gas) rate?
LDZ commodity 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 commodity charge (gas) forecast?
Our latest forecast for 2026-27 is 0.4590 p/kWh (med confidence). RIIO-GD3 implementation with established regulatory framework but methodology uncertainty
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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.