Transmission Planning Code Thursday 03 April 2008 Bogdan Kowalewicz OFGEM

Background TPCR Third Consultation - March 2006 highlighted 5% flow margin and queried if it was becoming less justified TPCR Initial Proposals - June 2006 expressed view that 5% flow margin, uniformly applied, was no longer appropriate TPCR Updated Proposals - September 2006 considered wider review of forecasting and network planning, not just a reform of flow margins TPCR Final Proposals - December 2006 outlined review of forecasting and planning and clarified NGG’s role in facilitating this process

Aims Greater transparency and clarity for system users Better consistency, especially when faced with changing patterns of flow across the network in future Improve quality of information available

Licence Requirements The transmission planning code shall cover all material technical aspects relating to the planning and development of the pipe-line system, including: a methodology to determine the physical capability of the pipe-line system the detailed assumptions that NGG uses

Next Steps Outline of methodology Applicability of flow margins Workshops to address the relevant issues including discussion on the following: Outline of methodology Applicability of flow margins Assumptions used in modelling