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The Necessary Criteria for a UNC Modification Proposal

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Presentation on theme: "The Necessary Criteria for a UNC Modification Proposal"— Presentation transcript:

1 The Necessary Criteria for a UNC Modification Proposal
Governance Workstream 16th August 2007

2 Principles “Proposals can be raised to modify or review the UNC, and any Modification Proposal or Review Proposal should be in writing, state which part of the UNC it refers to, and outline the purpose of the Proposal.” “However, the standard process can be by-passed (subject to Ofgem’s agreement) either in part or in whole when an urgent change is proposed.” Lengthy discussions at the last Mod Panel when considering Mod 0163 did not clarify the position of ‘when is a Mod not a Mod’?

3 UNC Mod Rules (Non-Urgent)
6.2.1 Each Modification Proposal made pursuant to paragraph or 6.1.2: (a) shall be in writing and shall specify whether it relates to the Uniform Network Code or an Individual Network Code; (b) shall set out in reasonable but not excessive detail the nature and purpose of the Modification Proposal; (d) shall detail the sections and paragraphs of the Uniform Network Code or the Individual Network Code which are to be amended or otherwise affected by the Modification Proposal;

4 UNC Mod Rules (Urgent) If the Authority considers it appropriate that the Modification Proposal referred to in paragraph should be treated as an Urgent Modification Proposal… …(b) to the extent that the Authority agrees with the recommendation made in the procedure and timetable submitted by the Transporters, all or any of the Modification Rules (including, but without limitation, consulting with the Modification Panel and seeking representations from each Transporter, Users and any Non-Code Party), may be deviated from or any other procedure accepted by the Authority may be followed.

5 Urgent Mod Criteria – Ofgem View
“[T]he Authority [has] a wide discretion in relation to urgent modification proposals. Any attempt to provide clear rules, which limited that discretion, would constitute an unlawful fetter of that discretion. For any guidance to be given or for the discretion to be focused in any binding way would require a change to the licence condition.” “However, it is currently our view that in general, urgent modifications are likely to exhibit at least one of the following characteristics: 1. There is a real likelihood of significant commercial impact upon GTs, Shippers or Customers if a proposed modification is not urgent; 2. Safety and security of the network is likely to be impacted if a proposed modification is not urgent; and 3. The proposal is linked to an imminent date related event. “

6 So, when is a Mod not a Mod? Uncertainty - Rules provide for a minimum standard of justification why a proposal should be treated as urgent, but not the more fundamental issue of if a proposal is suitable to proceed through the urgent Mod process in the first place. Who (if anyone) should make that decision? And, at what stage? What is / could be the role of the Mod Panel? What is / could be the role of the Joint Office? What effect does granting of Urgency by Ofgem have on the proposal in terms of meeting minimum requirements for a Mod Proposal?


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