NGN ISG Blog
Independent Stakeholder Group Update – October 2025
The Northern Gas Networks Independent Stakeholder Group (ISG) met in October 2025 to review NGN’s readiness for RIIO-GD3, and explore several forward-looking topics including artificial intelligence, vulnerability support, skills, and governance.
Draft Determinations and GD3 Readiness
The ISG received an update on Ofgem’s Draft Determinations and NGN’s position ahead of Final Determination in December.
Members discussed NGN’s overall allowance position, areas of challenge including benchmarking methodology, streetworks costs, and efficiency while always having the customer at the heart of the business.
The ISG emphasised the importance of ensuring that regulatory frameworks continue to align cost efficiency with service quality, to avoid consumer detriment and reinforce incentives for good performance.
Artificial Intelligence and Digital Strategy
NGN presented its developing AI and digital strategy, including early deployment of tools such as Microsoft Copilot and internal roadshows to build organisational understanding.
ISG members welcomed the progress made but encouraged NGN to remain ambitious and to benchmark more actively against other utilities and sectors. Discussion focused on:
- How AI could deliver measurable efficiency and customer service benefits
- The need to balance innovation with ethical considerations and safety
- The importance of workforce understanding and confidence, not just senior leadership engagement
- The environmental impacts of AI, including energy and water use, and the need for transparent internal communication
The ISG noted that AI will be an important enabler in GD3 (including in the potential efficiency challenge) and beyond, but only if customer benefit, affordability, and resilience remain central.
Vulnerability, Social Strategy and VCMA
An update was provided on NGN’s vulnerability and social strategy, including readiness for GD3 and collaboration with partners.
The ISG discussed how changes to VCMA governance in GD3 could strengthen impact while avoiding unnecessary bureaucracy or delays to urgent support. Members emphasised the importance of maintaining strong local delivery through trusted community organisations, particularly for customers in fuel poverty or at risk of disconnection. The NGN ISG is involved in these discussions with OFGEM.
The ISG also encouraged NGN to continue demonstrating leadership nationally through sharing good practice, evidence of social return on investment, and collaboration with other networks.
People, Skills and Apprenticeships
NGN provided a detailed update on apprenticeships and workforce development.
ISG members welcomed the progress made but highlighted ongoing challenges around diversity, particularly gender representation, and the need for more targeted recruitment approaches rather than neutral messaging.
Discussion also covered the future skills pipeline (noting the recent YIC work experience summer workshops), the impact of automation and AI on workforce requirements, and the importance of aligning recruitment with long-term changes in workload as traditional activities such as REPEX (replacing pipework) reduce over time.
Governance and Next Steps
The ISG closed the meeting by reflecting on its role in supporting challenge, assurance, and continuous improvement as NGN moves into GD3.
Key themes included:
- Keeping customer outcomes at the centre of regulatory and investment decisions
- Strengthening transparency and accountability as new licence obligations take effect and how to monitor and scrutinise them in GD3.
- Ensuring innovation delivers real value for customers, particularly those in vulnerable situations. This with the backdrop of increasing fuel poverty and debt.
The next ISG meeting will take place face-to-face in December 2025, providing an opportunity to reflect on Final Determination and confirm priorities for GD3 delivery.