Off-peak interruptible service to compliment universal firm/buy-back regime Peter Bolitho

Likely impact of 0116V proposals on off=peak users 0116V was a ‘Universal Firm’ regime for all NTS users. The up-front interruptible service would have been withdrawn. Modification did not define what level of daily capacity that would be made available. The reserve price for daily capacity was not defined. A day-ahead or within-day interruptible service was not offered. Cost may have adversely impacted storage, interconnector and occasional ‘back-up’ supply users Thema Datum Bereich

Way Forward – for off-peak users 0166 Review Group has been established to develop alternative proposals Access arrangements should take into account the different requirement of different users. Interruption service design should take into account: The cost such users place on the system Be compatible with Regulation 1775 Consider whether users make use of peak capacity? What contribution (if any) do users make to fixed costs? Do such users drive transmission investment? Thema Datum Bereich

Features of Customer focused ‘off-peak’ Interruptible service Remove maximum number of interruption days. Mandatory re-application as firm if gas is offtaken on a day forecast to be more than 85% of the 10 Year Statement 1 in 20 peak day demand. Mandatory re-application only applies where NG NTS has given D-1 notice that interruption is likely in a given area. Pay failure to interrupt charges if threshold exceeded and when local D-1 notice given. Existing capacity reduction procedures apply following reclassification. Introduce Supplemental Exit Point Commodity Charge initially set to zero but could be set as positive or negative number to better take into account the probability of interruption. Shippers can make an informed commercial decision whether to offtake gas on peak days Thema Datum Bereich

Conclusions Facilitates use of spare capacity Proposal is compatible with Regulation 1775 – 116V and 116CVV do not. Does not require changes to Gas Emergency Procedures/NG NTS Safety Case. Provides genuine customer choice Spare capacity is existing capacity that can be made available to interruptible users without detrimental impact to the continuity of supply to firm users. Thema Datum Bereich