Code Governance Review UNC Modification Proposals Beverley Viney - National Grid NTS
Background – Code Governance Review (CGR) Ofgem announced the Review of Industry Code Governance in November 2007 Code Governance Review (CGR) concluded at the end of March 2010 when Ofgem published their Final Proposals The licence modifications necessary to implement the Final Proposals for the CGR and the Code of Practice (CoP) were published on 3 June 2010 and become effective on the 31 December 2010
Background – Review Group 0267 Review Group 0267 “Review of UNC Governance Arrangements” raised October 2009 The Joint Office of Gas Transporters (JO), has been working with the industry on the necessary modifications to the UNC via the Governance Workstream National Grid volunteered to raise all the necessary governance modifications to implement the CGR Final Proposals National Grid have committed to liase with the industry in development of the proposals
Distribution Workstream – objectives of presentation Raise awareness of approach and timetable for developing the CGR UNC Modification Proposals Provide an overview of the content of each Modification Proposal Facilitate the provision of feedback Modification Proposals will be updated and formally raised for August Panel – consultation
Significant Code Review (‘SCR’) UNC Modification Rules change 3 main elements of proposal: Prevent an SCR related non-urgent Modification Proposal being raised during an associated SCR period The treatment of Modification Proposals determined as relating to a SCR Withdrawal or variation of SCR driven Modification Proposals
Self-Governance (‘SG’) UNC Modification Rules change 3 main elements of proposal: Clarification of when a Modification Proposal shall follow the Self Governance route A Self Governance Determination by the UNC Panel Appeals Process
Environment Evaluation of proposed modifications shall include assessment of the quantifiable impact on greenhouse gas emissions Details to be included in reports produced during progression of the proposal
Charging Methodologies Two proposals NTS Charging Methodology and Connection Charging Methodology Distribution Network Charging Methodology Key elements: Existing methodology (to be detailed in Appendix A) is incorporated within the Uniform Network Code UNC Modification Rules are amended to reflect that: a change to the Charging Methodology is not able to be made unless the requirements of the UNC Modification Rules are complied with the Transporters must convene regular meetings of the charging methodology forum/s a Modification Proposal in respect of a UNC Charging Methodology may only be made by a UNC signatory or a Materially Affected Party (being a person or class of persons designated by the Authority for this purpose)
Role of Code Administrators & Code of Practice The CGR Final Proposals require that code administrators: Act as a ‘critical friend’, in particular to small participants; and Act consistently with the Code Administrator Code of Practice. Other key elements: Ofgem send back powers Published reasons for Panel recommendations (based on relevant objectives) Legal text provision Cost information Super Mod (in terms of volume of changes to the mod rules)
Alternatives Aspect of the Code of Practice (CoP) - the approach to be taken when raising alternatives to Modification Proposals: alternative solutions being developed to the same degree as an original solution; and alternative proposals are raised prior to or during the working group stage. No alternatives (or further alternatives) can be raised once a Modification has been issued for Consultation
Appointment and Voting Rights for a Consumer Representative and Independent Panel Chair Modification Proposals 0286 and 0286A: “Extending Modification Panel Voting Rights to Consumer Representative(s)” Ofgem minded to approve 0286A Main elements of proposal: Option for the Authority to appoint a further Consumer Representative member Independent chair’s casting vote