25 September 2025
The Allocation of Unidentified Gas Expert (AUGE) plays a crucial role in ensuring the fair allocation of costs related to Unidentified Gas (UIG) — gas consumed but not directly recorded at supply meter points or lost due to leakages. Currently, UIG accounts for approximately 3% of total gas throughput in the UK.
Engage will continue to lead independent analysis of UIG sources, working in consultation with the industry to derive weighting factors that are applied annually across different site types and categories of gas consumption. These methodologies help ensure that UIG-related costs are equitably distributed among gas shippers and ultimately to end users.
As part of the new contract, Engage will consider ongoing changes in gas sources and how they may impact their calculations. This has been supported by Xoserve’s recent project ‘Managing different gases’ where it has established and mitigated the impacts of biomethane and hydrogen blending on UIG, ensuring that increased greener gases are accurately factored into the billing process.
Reflecting the maturing understanding of UIG, the industry has agreed to extend the AUG period from one year to three years, with the first table under this new structure taking effect in 2028. This change brings the benefits of enhanced bill cost predictability and reduced administrative burden.
The appointment follows a robust and transparent tender process, with a stakeholder evaluation panel ensuring the selected provider offered the strongest blend of expertise, innovation, and value for money.
Steve Brittan, CEO of Xoserve, said:
“We are confident that Engage can continue to bring the expertise needed to ensure a fair allocation of gas network costs, while also bringing the efficiency and innovation required to deliver value for money for consumers and support the changes required to decarbonise the industry.”
Matthew Johnson, Chief Executive of Engage Consulting, added:
“We are really pleased to be extending our strong relationship with Xoserve and are looking forward to collaborating with gas shippers on cost reduction and process improvements. Our expanded remit represents an exciting opportunity to drive greater efficiency across the gas settlement process whilst continuing to ensure fair cost allocation for all market participants.”
Table of Unidentified Gas Weighting Factors for Gas Year 2025/26
The latest AUG table, effective from 1 October 2025, is available on the Joint Office website.
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