Recommendation 34

Hydrogen UK and the National Audit Office reported that there was also uncertainty over the future role of the gas networks, if it is decided that hydrogen has a limited role and electricity becomes the main energy source.69 This included questions over who will pay for the networks to either continue in service if there is a decreasing customer base, or to be decommissioned. We asked DESNZ about potential funding options, including whether decommissioning would be funded by the taxpayer, the gas networks or a levy on customers or other energy users. DESNZ recognised that “there are all sorts of things you could look at” and that it would need to strike a balance between “current and future, and timing decisions”. In October 2023, the National Infrastructure Commission estimated that the cost of decommissioning the gas networks would be £25 billion. DESNZ said that it will be examining the costs as part of its strategic decisions on hydrogen.70