4 June 2026
In response to the consultation, Xoserve and Encodar have submitted a joint response, reflecting our collaborative approach following our application to become the future Gas Network Code Manager.
The most significant takeaway from SDS-2 is the greater emphasis on implementation. For the gas sector, the focus is increasingly on ensuring the governance, market arrangements and data frameworks needed to support the energy transition are ready to deliver against both immediate priorities and longer-term decarbonisation objectives.
As the pace of change accelerates, the interaction between policy development, code governance and operational implementation will become increasingly important. Ensuring these elements remain aligned will be critical to delivering a more resilient, efficient and adaptable energy system that benefits both industry and consumers.
From strategy to action: priority areas for the sector
Several priorities sit firmly within SDS-2’s “Act Now” category, reflecting areas where progress is expected to accelerate across the sector.
Security of supply is one example. Improving the quality, accessibility and completeness of industry data will support more effective resilience planning and operational decision-making, particularly as the energy system becomes increasingly interconnected.
Digitalisation is another major focus. SDS-2 reinforces the importance of treating data as a strategic asset and improving data sharing, standardisation and interoperability across the energy sector. This aligns with wider industry initiatives aimed at improving visibility, consistency and decision-making across energy markets.
For Xoserve, this reflects the growing importance of trusted data in supporting the operation and evolution of the gas market. As Great Britain’s Central Data Services Provider, Xoserve manages and maintains the data and systems that underpin critical market processes, placing it at the centre of many of the sector’s digitalisation and data-sharing ambitions.
Taken together, these priorities recognise a simple reality: effective delivery depends on trusted, accessible and interoperable data.
The role of code governance, management and collaboration
Alongside data and digitalisation, SDS-2 highlights the importance of code frameworks in enabling change.
Industry codes play a critical role in translating policy into practical implementation. Whether supporting the introduction of low-carbon gases, enabling market reform or adapting operational arrangements, effective code governance and change mechanisms are crucial to turn strategic objectives into industry reality.
As Code Administrator for the Uniform Network Code (UNC), the Joint Office of Gas Transporters plays a fundamental role in supporting this process through its management of processes and procedures, industry coordination and stakeholder engagement to facilitate code change. As policy and market requirements evolve, this role will become increasingly important in enabling timely, coordinated and proportionate implementation across the sector.
The interaction between governance, operational delivery and market reform is particularly important as the industry prepares for future developments relating to biomethane, hydrogen and digitalisation against the backdrop of wider code reform and Code Managers to deliver SDS-2 priorities. Close collaboration between regulators, code bodies, network operators, service providers and market participants will be essential to ensuring change is delivered efficiently and transparently.
Supporting system evolution while policy develops
SDS-2 also highlights several areas where progress remains dependent on further policy and regulatory clarity, particularly regarding the future role of gas networks, hydrogen, network repurposing and longer-term market arrangements. However, while some policy decisions are still evolving, industry preparation is already underway.
Across the sector, organisations are working to understand how different decarbonisation pathways could affect systems, processes and market frameworks. This includes efforts to support biomethane integration, assess future hydrogen pathways and ensure market arrangements remain fit for purpose as the energy landscape evolves.
For Xoserve, this includes ongoing work to understand how changing gas compositions and future multi-gas scenarios could impact settlement, billing and operational processes. As the network evolves to accommodate low-carbon alternatives such as biomethane and hydrogen, the data and systems supporting today’s gas market will need to evolve alongside it.
The challenge is not simply introducing new low-carbon gases into the network. It is ensuring the wider market framework can adapt safely, efficiently and transparently as the energy system becomes more interconnected.
A coordinated approach to delivery
Ultimately, SDS-2 reflects a sector increasingly focused on translating long-term strategy into practical implementation.
For the gas sector, this means progressing areas where the pathway is becoming clearer, including digitalisation, data sharing, biomethane integration and system resilience, while continuing to prepare for longer-term developments around hydrogen and future market arrangements.
Achieving this transition will require coordinated delivery across policy, governance, data and industry collaboration.
For organisations such as Xoserve and the Joint Office, the role is clear: helping provide the trusted data, effective governance and industry coordination needed to ensure the sector can deliver on both today’s priorities and tomorrow’s decarbonisation ambitions.
Get in touch
If you have any feedback or questions on any of the above, please email us at communications@xoserve.com.
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