In January 2017, as a consequence of the National Grid sale of a majority stake in the Gas Distribution business to Cadent Gas Limited, the Scheme was sectionalised into three legally separate and independent sections. Members of the Scheme are split across the three sections, which are funded as follows:
Section A - is sponsored by the National Grid commercial businesses which are not regulated by Ofgem.
Section B - is sponsored by National Grid's Gas Transmission business and is regulated by Ofgem.
Section C - is sponsored by Cadent Gas Ltd (formerly National Grid Gas Distribution), also regulated
The sections are all ring-fenced from each other, meaning there is complete separation of the assets and liabilities of each section. Each section also has its own assets, financial support and security arrangements, with no recourse between sections. The Trustee Board is responsible for the whole Scheme - in making sure it is secure, correctly administered, well-managed and funded, so that it is able to pay all its members' benefits in full and on time. The Trustee follows the principles of Integrated Risk Management with good oversight and monitoring of Funding, investment and Covenant. There is a strong governance of investment risk and operational risk through an effective risk framework, and a robust investment strategy.