Transmission Planning Code Transmission Workstream 6th March 2008

Introduction National Grid Gas (NGG) has a new licence obligation to introduce a Transmission Planning Code by 1 October 2008 that will “cover all material technical aspects relating to the planning and development of the pipe-line system…which may have a material impact upon persons connected to or using (or intending to connect or to use) the pipe-line system” Aim is to improve transparency of NTS planning process NGG will publish open letter on 7 March 2008 inviting views on the scope of Transmission Planning Code document

Transmission Planning Code – What is it? Framework document relating to the planning and development of the NTS Methodology to determine the physical capability of NTS considering Entry and exit capacity release obligations How much capacity can be transferred/traded between entry points How incremental flows at entry and exit affect system capability Statutory network security obligations Detailed assumptions on How supply and demand patterns will develop over time How the system will be operated under different supply and demand scenarios

Transmission Planning Code – Governance Transmission Planning Code must be in force by 1 October 2008 after consultation with interested parties and approval by the Authority NGG must comply with and maintain the code Review and consultation process undertaken by NGG at least every 2 years Modifications must be approved by the Authority

Timeline (2008) March April May June July Aug Sept Oct Nov... Implementation Development 7 March Open letter inviting views on scope by 21 March 2008 April/May Industry discussions on draft document June/July Formal consultation (28 days) Aug/Sept Authority considers consultation report 1 October 2008 target date for implementation

Draft Scope Legislative guidance documents e.g. IGE recommended practice documents Planning legislation and consents process e.g. Implications for investment lead times National Grid policies relevant to planning and development of NTS e.g. assessment of new loads, design of NTS pipelines and installations Network Analysis techniques e.g. considerations for investment planning, how physical capability is determined Supply and Demand Outlook e.g. how TBE forecasts are used in investment planning

Next Steps NGG publish open letter 7 March 2008 inviting views on draft scope Responses requested by 21 March 2008 NGG to develop draft Transmission Planning Code document for discussion Consideration given to licence requirements and industry views on scope Industry workshops to discuss draft document during April and May – suggested dates are: 3 April 2008 and 1 May 2008 (after Transmission Workstream) Further workshops June and July to support consultation if required