Mod 230: QSEC and AMSEC Timings

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Presentation transcript:

Mod 230: QSEC and AMSEC Timings Transmission Workstream, January 2009

Background Proposal raised 15 October Proposal referred to November workstream for further development and was subsequently modified Proposal went out to consultation in November along with its alternate Support was largely given to 230A over to 230 due to 230A retaining a September ’09 QSEC Two issues raised with 230 by BGT Moving AMSEC capacity release from April to October removes primary opportunity for shippers to acquire summer capacity after receiving maintenance plans Moving QSEC to March and AMSEC to June exacerbates a current situation whereby the same capacity period is offered for sale at two different prices Proposal sent back to workstream for further discussion

Addressing the Concerns NG NTS’ preferred solution is to retain the proposal as currently drafted Our analysis shows little evidence of AMSEC being used for the immediate summer bookings Creates a tidy solution whereby Capacity Year definition can be changed Provides for a timely transition to the new regime Maintains the spread of auctions over the calendar year Regarding concerns expressed about losing an ’09 QSEC: NG NTS does not intend to include a September ’09 auction in its proposal taking into account the reasons currently included in the proposal and that there is an alternate on the table that addresses this issue Neither 230 or 230A currently address the concerns about moving AMSEC- there are a couple of options for moving this forward

Options Option 1 is to continue to hold AMSEC in February but shorten the transaction period to 18 months (from 2 years): Would not be able to change definition of Capacity Year (would have to resolve through legal text drafting) Condenses two long term auctions very close to each other Maintenance plans finalised Solves pricing issue (no overlap in AMSEC and QSEC transaction periods) Option 2 is to hold AMSEC in January: Maintain some distance between QSEC and AMSEC Maintenance plans not finalised Pricing issue remains

Views? NG NTS would welcome your views on how to take this proposal forward…