Reinstatement of NTS Interruption

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Presentation transcript:

Reinstatement of NTS Interruption 6th November 2008

Background Modification Proposal 0090 “Revised DN Interruption Arrangements” removed existing DN and NTS Interruption arrangements from October 2011 Enduring arrangements for NTS Interruption from October 2011 were to be set out in Mod 0116 “Reform of the NTS Offtake Arrangements” Competition Commission ruling on the approval of 0116V has delayed the start of the enduring NTS regime There is therefore no access to NTS Interruption beyond October 2011

Impact of the Inability to Access NTS Interruption All NTS Interruptible load effectively goes Firm Significant additional transportation capability would be required Timescales to construct this capability are insufficient GNCC would be unable to use NTS Interruption to manage system constraints Use of Operating Margins gas or entry capacity buybacks may be less economic than Interruption Efficiency of the operation of the Total System may be reduced Increased probability of a constraint leading to a Network Gas Supply Emergency

Proposed Next Steps Raise a Modification Proposal to change the UNC Transitional Document Section IIC to retain the ability for National Grid NTS to access NTS Interruption beyond October 2011 Use of NTS Interruption as an economic and efficient commercial tool for constraint management can continue until alternative tools are introduced through Exit Reform