1. Review Group 166
End User Perspectives
20 September 2007
Julie Cox

2. End user problems and issues
Current ARCA arrangements work well
BUT - need to be able to secure capacity in advance when no investment is required
Is presumption of firm offtake efficient ?
Spare capacity
Impact on competition
Sites only using NTS as backup
Interruptible sites may decommission alternative fuel capability
Security of supply implications
Is best outcome achieved by treating all offtakes the same?

3. End user problems and issues
If longer user commitment required
Timeframes for commitment should reflect commercial and physical realities
Align with NG commitments
Application window concept inflexible
Day-to-day operations
Should be kept simple to avoid unnecessary costs
Maintain efficient market interaction – gas & electricity
Need to understand planned changes in offtake as apposed to those at short notice

4. What does offtake reform need to achieve?
Stable regulatory framework I
NTS fit for purpose
Adequate investment to support competition and security of supply
Reasonably priced transmission services
NG need to take a holistic view of investment
NG need assurances over allowed investment

5. What does offtake reform need to achieve?
Stable regulatory framework II
Provision of capacity to new and existing connections
Business continuity
Customer investment in long-lived assets
Compensation
Framework consistent with EU Directives and Regulations