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Published byTamsin Kelley Modified over 8 years ago
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NTS Exit Regime Transmission Workstream – 6 th July 2005
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Contents Update on Authority Decisions Proposed Transitory Arrangements UNC Changes Way Forward
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Update on Authority Decisions Authority decision on Network Sales concluded that NTS Exit arrangements required reform to be introduced in two phases: “Interim” Arrangements established new commercial framework recognising the new NTS/DN interface “Enduring” Arrangements (by September 2005) to introduce more market based arrangements effective from gas year 2008/09 On 24 June, Authority announced delay to implementation of Enduring Arrangements until September 2007 for release of capacity rights from gas year 2010/11
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Implications of delay Regime requires to be extended to cover gas years 2008/09 and 2009/10 Regime requires to address within and beyond typical 3 year investment lead time Concept of “Transitory Arrangements”
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Transitory Arrangements - Proposed Objectives Minimal process and contractual changes Economic and efficient regime development Not unduly discriminatory
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Transitory Arrangements - Proposed Principles Capacity products and contracting/invoicing parties unchanged DNs need capacity allocations for 3 years ahead under Safety Case (Transco NTS interpretation) Require extension of capacity rights beyond 30 Sept 2008 Incremental investment underpinned by financial commitment Additional information from DCs and DNs to support 5 year NTS development plan
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Information Exchange Formulation of 5 year NTS development plan requires NTS offtake specific information Formalise previous internal process for DNs Provision of offtake specific peak and off-peak information –by July each year –non-contractual discussions for 2005 Invite DCs to participate in provision of indicative capacity requirements Better facilitate economic and efficient development of NTS and DNs Publication of information to market?
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Universal Capacity Reservation Process Opportunity for existing and new DCs and DNs to signal indicative requirements for all capacity 3 years or more ahead through a common process Financial commitment to reserve capacity that requires NTS investment Commitment that capacity will be booked for at least [1] year from agreed delivery date Provides assurance to contract holder of availability of capacity
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Capacity Application and Allocation Process DCs Follow existing UNC processes Requests within investment lead time subject to same mechanisms as under IExCR DNs Applications: Able to request during June/July –changes to current allocations within investment lead time –capacity for investment critical year Allocations: –requests for the investment critical year will be allocated if within reservation amount –other requests subject to same mechanisms as under IExCR Offtake Capacity Statement confirms entitlements by 30 Sept –satisfies DN safety case requirement
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Way Forward Changes necessary to satisfy Transitory Arrangements Safety Cases Economic and efficient development of NTS and DNs Non-discriminatory capacity release UNC Mod Proposals required Incentive Arrangements to be developed
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