1. CAP190: Workgroup Report CUSC Modifications Panel, 26th August 2011
Alex Thomason, CAP190 Workgroup Chair

2. Background
Issue identified by QC with existing rights of appeal to Competition Commission
NGET raised CMP196 to deal with existing anomalies
CAP190 Workgroup was on hold since January 2011
Review date of July 2011
CMP196 raised to deal with ambiguity relating to ‘recommendations’ in the CUSC. Panel voted unanimously that CMP196 better facilitates the ACOs.
CAP190 timetable extensions granted
January 2011: Panel agreed to one month extension
February 2011: Panel agreed to further one month extension
March 2011: Panel agreed to four month extension to July 2011

3. Other code modifications
UNC 0312 raised by E.ON UK in May 2010
BSC P264 raised by Drax Power in August 2010
Authority rejected both proposals on 20 July 2011
UNC 0312
UNC 0312 raised 26th May 2010, varied multiple times – version 4.0 was issued 12th October 2010
5 votes for implementation (shippers), 6 did not vote for implementation (Transporters & Consumer Focus)
P264
5 BSC Panel members voted P264 better than baseline (all preferred Alternative over Proposed); 4 members voted not better.

4. CAP190 recent developments
Majority decision by Panel at July meeting not to extend Workgroup timetable
Proposer does not wish to withdraw CAP190
Workgroup Report compiled to capture Workgroup discussions
No Workgroup consultation carried out
No Workgroup recommendations made
No legal text drafted
Proposer
The Code Administrator contacted the Proposer (Lisa Waters) after the Panel decision to ask what she wanted to do. Response: People seem to want it to go to consultation so they could complain about the BSC UNC decision. So will not withdraw and allow industry to get it off its chest!
WG Report has been compiled to capture the details of CAP190, the discussions, legal advice etc. In light of CMP196 and developments with CAP190, no WG recommendation has been made and no legal text has been drafted. NG has provided an initial view in the report:
National Grid initial view
6.2 National Grid agrees with the principle that existing rights of appeal should be maintained. However, the implementation of CAP190 would not necessarily be more efficient in terms of fulfilling licence obligations as a party may still raise an appeal under circumstances where there has been a two-thirds majority vote for implementation. National Grid believes that the decision of the Panel should be focused on the merit of the proposal itself and not potentially on keeping open the rights of appeal.
6.3 In addition, whilst a unanimous Panel vote indicates a clear view to the Authority and the industry, it is possible under CAP190 that only one additional vote could result in a two-thirds Panel majority and this therefore represents only a marginal difference from the current position.
6.4 National Grid notes that CAP190 has not been fully developed and for clarity this view is an initial view based on analysis undertaken by the Workgroup to date.

5. CAP190 Next Steps Panel invited to: ACCEPT Workgroup Report
AGREE CAP190 progresses to Code Administrator consultation

6. Timetable 1st Sept Publish Code Administrator Consultation 22nd Sept
Code Administrator Consultation closes
29th Sept
Draft final CUSC modification report published
6th Oct
Deadline for comment
28th Oct
Panel Recommendation Vote
2nd Nov
Final CUSC Modification Report sent to Panel
9th Nov
Deadline for Panel comment
10th Nov
Final CUSC Modification Report sent to Ofgem
15th Dec
Indicative Authority Decision