User Compensation for NEC Storage Curtailment – Draft Proposal

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Presentation transcript:

User Compensation for NEC Storage Curtailment – Draft Proposal Transmission Workstream 01/12/2005

National Grid Transmission 0052 response Concerned about reduction in incentive for 0052 shippers and potential for increased role for Residual Balancer Is 30 day SAP appropriate compensation

Aims Appropriately compensate Users affected by Storage Curtailment Ensure that Users remain incentivised to contribute to the physical balance of the system Recognise that title to the gas held in Storage remains with the User

Proposed Compensation Amount Lesser of: SMPBuy – SAP or SAP – (ASSAP + 0.0611p/kWh) Where, ASSAP (average summer SAP) 0.0611p is the mod 0433 derived minimum differential between SMPBuy and SMPSell

Example 1st Curtailment Period 2nd Curtailment Period User Injects 25 units between curtailment periods 1st Curtailment Period 2nd Curtailment Period

Example