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Business gas: Project Nexus modifications delayed to Oct 2016

The implementation of Project Nexus, which will make significant changes to the gas market, has been delayed until October 2016, Ofgem has announced.

The regulator has delayed the implementation from September 2015 to allow “robust systems testing and market trials” to take place, industry newswire Utility Week reported.

What is Project Nexus?

Project Nexus is looking to replace the UK Link system, which works out how to charge and settle UK business gas and is currently operated by Xoserve. Project Nexus aims to ensure that the replacement systems meet current and future needs.

The new systems were due to be implemented on 1 October 2015 but Ofgem, the Government regulator for UK gas markets, admitted some time ago that “this date is at risk”. Despite “taking steps to strengthen the governance, management and assurance of Project Nexus”, PwC advised Oftem earlier this year that the October date was not realistic, much to their apparent disappointment.

The time needed test systems ahead of market trials for gas transporters and shipping means that Ofgem have just stated that the project will go live in October 2016, with a series of milestones to achieve in order to increase transparency.

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