1. MOD 0351 - Deemed applications – User pays initial thoughts.
Transmission Workstream 6 January 2011
Transmission Work stream 2 December 2010

2. MOD 0351 - Background Discussed at July/August 2010 workstream
General support
Potentially benefits all NTS Exit (Flat) Capacity holders by amending the rules for deemed applications
Where NTS Exit (Flat) Capacity holders have multiple deemed applications at an NTS Exit Point
Some benefit for National Grid NTS
Clearer investment signals

3. User pays MOD 0351 is a User pays proposal Changes to xoserve systems
Costs around £40 to 80k if included in Exit Phase 3 IS release
MOD is unique (to date) for a non-zero cost User pays proposal in that:
All NTS Exit (Flat) Capacity holders potentially benefit
i.e. potentially benefits DNO and Shipper Users equally
Current User pays arrangements require apportionment of costs to Shipper Users and Transporters separately

4. National Grid NTS view
Need to demonstrate appropriate apportionment of costs to all parties benefiting from the proposal
Proposed apportionment is one based on each User’s (Shipper and DNO) NTS Exit Capacity holdings as at 1st October 2012
Transporter apportionment of costs based on:
10% of total costs apportioned to National Grid NTS
Remaining 90% pro-rated between Shipper and DNO Users
Based on ratio of aggregate DNO Users NTS Exit (Flat) Capacity holdings to aggregate Shipper Users NTS Exit (Flat) Capacity holdings
Resulting DNO User proportion is added to the 10% NTS allocation to form the total “Transporter” User Pays allocation of costs
Example follows...

5. User pays apportionment example
Based on Users current NTS Exit (Flat) Capacity holdings (1st October 2012)