1. Transmission Planning Code – Draft Document
Transmission Planning Code Workshop 4
3rd July 2008

2. Introduction
National Grid Gas (NGG) has a new licence obligation to introduce a Transmission Planning Code by 1 October 2008 that will
“cover all material technical aspects relating to the planning and development of the pipe-line system…which may have a material impact upon persons connected to or using (or intending to connect or to use) the pipe-line system”
Aim is to improve transparency of NTS planning process
NGG must comply with and maintain the code, reviewing it at least every two years
Review cycle will include consultation with interested parties

3. Transmission Planning Code – What is it?
Framework document relating to the planning and development of the NTS
Methodology to determine the physical capability of NTS considering
Entry and exit capacity release obligations
How much capacity can be transferred/traded between entry points
How incremental flows at entry and exit affect system capability
Statutory network security obligations
Detailed assumptions on
How supply and demand patterns will develop over time
How the system will be operated under different supply and demand scenarios

4. The story so far... Open Letter on Draft Scope published 7 March 2008
4 non-confidential responses received from E.ON, Centrica Energy, RWE npower, Scotia Gas Networks
3 workshops held between April and June
Topics covered include Supply and Demand Scenarios, Flow Margin, Entry and Exit Processes
Draft TPC document circulated for comment ahead of formal consultation
Discussions have confirmed the need for a high level framework document, in summary:
Commercially sensitive data will not be published
“Code of practice” for planning and developing the NTS
Stable framework to be established for investment decision-making
Duplication of other methodologies to be avoided
Link between TBE forecasts, entry/exit commercial processes and investment planning should be clear

5. Consultation planned from w/c 7 July
Timeline (2008)
March
April
May
June
July
Aug
Sept
Oct
Nov...
Implementation
Development
7 March
Open letter inviting views on scope by 21 March 2008
April-July
Industry discussions on draft document
July
Formal consultation (28 days)
Aug/Sept
Authority considers consultation report
workshop 3 July
Consultation planned from w/c 7 July
1 October 2008
target date for implementation

6. Content of TPC (1)
“The transmission planning code shall cover all material technical aspects relating to the planning and development of the pipe-line system to which this licence relates, which may have a material impact upon persons connected to or using (or intending to connect to or use) the pipe-line system to which this licence relates,”
Chapter 2: Legislative framework
Gas Act and Licence
Pipeline Safety Regulations
Pressure Systems Safety Regulations
Gas Safety (Management) Regulations
EIA Directive
Town and Country Planning Act
IPPC Directive
EU ETS Directive
Chapter 3: Policy and guidelines
Relevant IGEM guidelines
National Grid planning policy

7. Content of TPC (2) “and shall include:
(a) a methodology to determine the physical capability of the pipe-line system to which this licence relates ...”
Chapters 5 and 6: Supply and Demand
Physical capability is dependent on supply/demand assumptions used
Chapter 4: Investment Planning
Network capability analysis and investment planning analysis
Chapter 9: Network Analysis
Network analysis assumptions

8. Content of TPC (3) Chapter 7: Entry Capacity
“... specifying in detail how the licensee is taking into account:
(i) its entry capacity release obligations ... and its exit capacity release obligations ...;
(ii) the amount of capacity that may technically be transferred or traded between NTS entry points;
Chapter 7: Entry Capacity
Influence of QSEC, IECR and capacity substitution on plan
T&T undertaken in operational timescales
IECR and Entry Capacity Substitution Methodologies contain detail
Chapter 8: Exit Capacity
Transitional period only
Interaction of OCS and load enquiry data with plan
ExCR contains detail
Chapter 4: Investment Planning
Physical model results compared against commercial obligations

9. Content of TPC (4) “
(iii) the impact of incremental gas flows upon the capability of the pipeline system to which this licence relates at each NTS entry point and NTS exit point; and
(iv) statutory network security standards.”
Chapter 4: Investment Planning
Planning cycle, network capability and investment planning
Chapter 9: Network Analysis
Network analysis assumptions
1-in-20 peak as in S.Sp.C. A9
also GSMR requirement for adequate pressure for gas leaving the NTS

10. Content of TPC (5)
“(b) the detailed assumptions that the licensee is using in respect of:
(i) the likely developments in the patterns of the supply of gas and the demand for gas;
(ii) the likely developments in the levels of the supply of gas and the demand for gas; and
(iii) the likely operation of the
pipe-line system to which this licence relates for any given pattern and/or level of supply of gas or demand for gas.”
Chapters 5 and 6: Supply and Demand
Scenario based approach
TYS, Demand Forecasting Methodology contain details
Chapter 9: Network Analysis
Use of network analysis models for relevant gas year and supply/demand scenarios
Network analysis assumptions

11. Summary
Draft Transmission Planning Code has been developed through discussions with industry
Aim is to describe high level framework surrounding planning and development of the NTS
Balances requirements for transparency and data confidentiality
Periodic reviews will be undertaken to ensure the document is maintained in line with legislative, commercial and planning policy changes
28-day formal consultation planned from w/c 7 July
Consultation report submitted to Ofgem late August
Authority decision on document during September
Implementation from 1 October 2008, subject to consultation responses and Authority approval