1. User Compensation for NEC Storage Curtailment – Draft Proposal
Transmission Workstream 01/12/2005

2. National Grid Transmission 0052 response
Concerned about reduction in incentive for 0052 shippers and potential for increased role for Residual Balancer
Is 30 day SAP appropriate compensation

3. Aims Appropriately compensate Users affected by Storage Curtailment
Ensure that Users remain incentivised to contribute to the physical balance of the system
Recognise that title to the gas held in Storage remains with the User

4. Proposed Compensation Amount
Lesser of:
SMPBuy – SAP or
SAP – (ASSAP p/kWh)
Where, ASSAP (average summer SAP)
0.0611p is the mod 0433 derived minimum differential between SMPBuy and SMPSell

5. Example 1st Curtailment Period 2nd Curtailment Period
User Injects 25 units between curtailment periods
1st Curtailment Period
2nd Curtailment Period

6. Example