Hydrogen Economic Regulatory Framework: developing an effective framework for pipeline networks

The government response confirms that we intend to establish an effective economic regulatory framework for hydrogen pipeline networks through legislation, licences, and a new hydrogen network code.

This framework will aim to provide regulatory clarity, support investment, and ensure the safe and efficient operation of early hydrogen pipeline networks through:

• maintaining existing licence structures for primary and residual balancing
• assigning the role of System Operator to hydrogen transporters
• exempting hydrogen supply to premises from supplier licence requirements, keeping this under review as networks develop
• the development of a new hydrogen network code

We received 49 responses to this consultation from a range of organisations, including:

• hydrogen producers
• transporters
• trade associations
• investors
• research bodies

The majority of consultation responses supported these proposals.