Assignment of NTS Entry Capacity – Background and UNC Obligations Assignment Workstream, 7th April 2009

Background National Grid NTS has been asked by the Industry to consider the concept of NTS Entry Capacity Assignment: “the transfer of financial liability in addition to the entry capacity entitlement” The concept of NTS Entry Capacity Assignment has been discussed at the following forums: Transmission Workstream Review Group 221 Though there has been some discussion of Industry requirements no consensus has been reached Whilst there are some Assignment provisions within the UNC National Grid NTS has consistently stated that an Assignment process of the complexity indicated by the Industry would be subject to the User Pays process.

UNC Obligations… UNC General Terms Section B6.1 (Please note that these terms are not specific to NTS Entry Capacity but to a generic assignment of the Users Account) A User may assign all its rights under the Uniform Network Code ; Agreement in writing must be sought from the relevant Transporter Where the assigning party is a Shipper they may only assign to another Shipper The Assigning party may not assign their credit limits such limits must be determined separately for the assignee The assigning User is liable for all obligations that have accrued up to the date of which the assignment takes place; After assignment the obligation to pay for the entry capacity rights lie with the assignee;

UNC Obligations National Grid NTS believes that NTS Entry Capacity Assignment has the following characteristics; It can only be made between two parties (there are no provisions for partial assignment); All the NTS Entry Capacity rights must be assigned as part of an Account Assignment; It applies across all ASEPs