Entry Capacity Buy Backs Feeder 7 Shutdown July 2006 National Grid NTS Dave Adlam 3 August 2006
Summary Feeder 7 outage Reasons for constraints during July Commercial implications of constraint Entry Capacity Neutrality
Feeder 7 Shutdown - Overview Feeder 7 – Shutdown at Asselby To accommodate connection of new number 29 feeder between Ganstead & Asselby Summary of planned works 3 – 5 th July - Decommission section of feeder between Asselby & South Duffield 6 – 15 th July - Cutting of the pipeline and insertion of valves for new connection 16 th July – Re-commission feeder Feeder 29 between Ganstead and Asselby to be commissioned later in year.
Feeder 7 Shutdown Rough Easington Towlaw Bishop Auckland Cowpen Bewley Elton Little Burdon Thrintoft Pannal Towton Asselby Rawcliffe Blyborough Thornton Curtis Paull Hornsea Hatton Teesside Burley Bank Baldersby Pickering Ganstead Burton Agnes Saltend BP New Pipeline 2008 To Nether Kellet New Pipeline 2006/7
Reasons for constraint action Assess the best time to plan the maintenance Demand Levels Supply Inputs 3 rd – 5 th July decommisioning of Feeder 7 System configured to deal with anticipated supply / demand profile Supply / Demand changes St Fergus Interconnector Constraint at Teesside Low level of supplies in Bacton area 5 Th – 9 th July System reconfigured to provide better supply / demand balance St Fergus constraint 10 th July Feeder 7 recommisioned St Fergus constraint lifted
Entry Capacity Buybacks -Teesside
Entry Capacity Buybacks –St Fergus Prices up to nearly 10 p/kWh Previous highest approx 0.60 p/kWh
Locational Actions
Total Cost of Capacity Buy Backs and Locational Actions Entry Capacity Buy Back – St Fergus £27,386,761 Entry Capacity Buy Back – Teesside £ 639,062 Loc. Buys – Bacton & adjacent area £ 984,821 Loc. Sells – St Fergus & adjacent area - £ 623,797 Total Cost of actions £28,386,847
Entry Capacity Neutrality For all relevant ASEPs the difference between amounts received or payable by National Grid in respect of Relevant Capacity Charges shall be payable to or recoverable from relevant Users. Relevant Capacity Revenues include: Capacity sold on the day Interruptible capacity Capacity sold in excess of baseline in the daily auctions Locational Sell actions Overrun charges Relevant Capacity Costs include: Capacity Management Charges Constraint costs resulting from the buy back of entry capacity Locational Buy actions
Entry Capacity Neutrality For each day there will be a net financial position This is the difference between the revenues generated across the Network (at all ASEPs) and the costs generated This is then smeared across all Shippers who hold firm entry capacity If the net financial position for a day was a cost of £1,000,000 and a Shipper held 10% of the firm entry capacity (across all ASEPs) on that day then they would be required to pay £100,000