How Cadent Gas used AIM in optimised renewal planning for the UK’s largest gas network.
Client:
Cadent Gas
Location:
UK (four regulated gas networks)
Consulting Partner:
ICS Consulting, supported by Probit
Asset Types:
Low-pressure gas mains, cast iron pipes, methane detection and sealing programmes
AIM Version Used:
AIM 3.0 – 4.2
Key Outcome:
£81m in long-term savings, regulator-approved investment plans, and 25% OPEX savings through optimised network renewal
Cadent Gas is the UK’s largest gas distribution network operator, managing over 131,000 km of lower-pressure mains across four of the eight regulated networks. It supplies 10.8 million homes and businesses and operates under Ofgem’s RIIO price control framework, with a regulated asset value of £9 billion.
As a critical player in the UK’s energy infrastructure, Cadent is responsible for ensuring public safety, reliability, and the long-term resilience of the gas network, while meeting challenging regulatory, environmental, and cost-efficiency goals.
The challenge
Cadent’s iron mains replacement programme is one of the most ambitious infrastructure undertakings in the UK. Mandated by the Health & Safety Executive, the programme requires renewal of 1,600 to 1,700 km of iron mains annually until 2032.
Cadent needed to deliver this scale of work while meeting strict Ofgem performance requirements and reducing OPEX, which had been rising by 30% annually due to untargeted investment.
Traditional planning tools lacked the ability to target schemes accurately, prioritise risks effectively, or model benefits in a transparent and regulator-ready way.
Cadent needed a fully optimised, data-driven approach to investment planning that could also support tactical delivery.
Who worked on this project?
Cadent selected Probit’s AIM platform after a global search for a suitable decision support solution. ICS Consulting acted as Cadent’s delivery partner, bringing sector-specific experience in asset investment planning.
ICS led the configuration of AIM for Cadent’s use, while Probit provided deep technical guidance, enabling full customisation of AIM’s modelling environment and ensuring the technical back-end was robust.
This partnership supported not only the initial deployment, but a continuous refinement programme to expand AIM’s role into day-to-day tactical investment planning and performance reporting.
How was AIM used?
AIM was configured to deliver a powerful, flexible, and highly scalable investment decision framework. It allowed Cadent to:
- Model individual pipes across its vast network using failure data, asset characteristics, and GIS location data.
- Optimise interventions under multiple objectives, including cost, safety, emissions, and service continuity,using Gurobi-powered scenario analysis.
- Visualise outcomes through intuitive dashboards and board-level reports, enhancing internal engagement and confidence.
- Integrate emission data, including methane leakage from advanced detection tools into investment scenarios.
- Leverage regulatory models, including the Ofgem-approved NARMS template, for performance and compliance planning.
- Undertake cost benefit assessment of innovative interventions such as CISBOT Robotic joint welding.
The results
The impact of AIM at Cadent was significant and measurable:
- £81 million in total savings over 24 years through optimised investment planning due to targeted emissions modelling.
- 25% OPEX savings (~£5 million) achieved within just two years of implementation by balancing proactive and reactive more efficiently.
- 40% potential methane emission reduction, using the same investment budget,through AIM-informed targeting.
- Faster NARMS reporting, reducing time from days to minutes.
- More efficient delivery schemes, cutting average unit costs and improving resource use.
- Regulatory approval from Ofgem for AIM-based planning during both the GD2 and GD3 cycles.
AIM helped Cadent move from strategic modelling to real-world delivery planning, selecting exact pipe schemes for annual workstacks.
“AIM has changed the game for us, providing clarity and confidence in our investment decisions. The ability to see the predicted outcomes of our strategies has been invaluable, allowing us to navigate complex regulatory and operational landscapes with ease.”
Sam McGauley
RIIO-GD2 Mains Renewal Investment Lead, Cadent
Technical insight
Cadent’s AIM implementation leveraged high-speed optimisation, asset-level simulation, and risk monetisation within a single configurable platform.
Using AIM’s built-in model library and scenario engine, planners could test different combinations of interventions, objectives, and constraints, including environmental penalties, safety metrics, and budget caps, across an 8-year regulatory period.
AIM’s uncertainty analysis feature allowed model parameters to be stress-tested and refined. Outputs could be aggregated and exported into Cadent’s internal systems or reviewed through intuitive dashboards.
This provided both strategic and tactical insight, from board-level presentations to field deployment.
What followed for Cadent and AIM?
Cadent continues to expand AIM’s use in its tactical planning environment.
The platform is now used regularly to generate annual work programmes and prioritise schemes using the most up-to-date asset data. AIM also supports complementary technologies such as CISBOT robotics and advanced gas detection platforms.
Cadent plans to further integrate these tools, using AIM as the hub for future-focused, value-led investment decision-making.
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