National Grid Plc
National Grid plc is the network operator in Great Britain. They are responsible for the physical transportation of gas, as shippers are required only to nominate quantities entering and/or exiting the network, and not the transport route which the gas should physically follow. The National Grid has the power to bring the system into balance, if shippers as a whole are out of balance. This is achieved by trading on the OCM (see below) and passing the cost onto gas shippers through the cash-out system. When the system is short of gas it tends to force prices at the NBP up. When the system is long gas, the price is forced down. This can provide an advantageous trading environment to a shipper which has flexible flow contracts.
Read more about this topic: National Balancing Point (UK)
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