Review Group 166 End User Perspectives 20 September 2007 Julie Cox

End user problems and issues Current ARCA arrangements work well BUT - need to be able to secure capacity in advance when no investment is required Is presumption of firm offtake efficient ? Spare capacity Impact on competition Sites only using NTS as backup Interruptible sites may decommission alternative fuel capability Security of supply implications Is best outcome achieved by treating all offtakes the same?

End user problems and issues If longer user commitment required Timeframes for commitment should reflect commercial and physical realities Align with NG commitments Application window concept inflexible Day-to-day operations Should be kept simple to avoid unnecessary costs Maintain efficient market interaction – gas & electricity Need to understand planned changes in offtake as apposed to those at short notice

What does offtake reform need to achieve? Stable regulatory framework I NTS fit for purpose Adequate investment to support competition and security of supply Reasonably priced transmission services NG need to take a holistic view of investment NG need assurances over allowed investment

What does offtake reform need to achieve? Stable regulatory framework II Provision of capacity to new and existing connections Business continuity Customer investment in long-lived assets Compensation Framework consistent with EU Directives and Regulations