1. MOD0166 – Reform of the NTS Offtake Arrangements Storage Perspective
Craig Purdie (Centrica Storage Ltd.)

2. What Does Offtake Reform Need to Achieve?
User Commitment
116 proposals appear reasonable for new build offtakes
Reduced commitment for low cost projects (use of existing capacity)
Avoidance of double charging with entry for bidirectional sites
Consider a staged approach to user commitment
Arrangements for Interruption
Current arrangement deemed as acceptable (CC note some need for reform)
Must maximise utilisation of NTS
Cost reflective service
Avoid monopolisation of interruption services
Must not penalise flexible offtakes and must not cause cross subsidy for no reason
Management and Monitoring of Linepack Depletion
Diurnal storage provided from NTS without further investment where possible
If and when diurnal capacity runs out, it is economically sourced
Must not create an artificial scarcity when it does not physically exist
Principles of the capacity mechanisms to put proposal in correct context.

3. What are the Key Problems and Issues that Stakeholder Groups face at the moment?
User Commitment
NONE – Happy with ARCA at the moment
Arrangements for Interruption
Current arrangements viewed as non-discriminatory (ref CC conclusion)
Incremental rather than fundamental reform
Management and Monitoring of Linepack Depletion
Need for greater transparency - ‘Black box calculation’ – no view on how fair the assessment is
No firm view of whether flexibility is increasing or decreasing
How do we recognise when there is a shortage? When we recognise this, how do we deal with it?
Monitoring of flex without publication of commercial interests
Principles of the capacity mechanisms to put proposal in correct context.