1. DSR Workgroup
10 September 2014

2. DSR Shipper / supplier contract issues
DSR Workgroup 10th September 2014
DSR Shipper / supplier contract issues
Shippers / suppliers are expected to be the contractual interface between DM customers and the DSR bidding platform to facilitate customers offering load for DSR purposes after a gas deficit warning has been issued.
Where there is a demand from customers for this service, Shipper / Suppliers are happy to facilitate this, but we need to recognise they do have limited operational resources
Under stressed supply / demand conditions resources will be focussed on managing the portfolio balance position and maintaining security of supply
Therefore arrangements with customers need to be:
Straightforward in application and execution (to avoid confusion in an emergency situation)
Not increase shipper balancing risk
Propose:
Standard set of minimum terms that shippers could offer
Variations (or enhancements) to these terms could be managed bilaterally, this may encourage more complex / innovative DSR arrangements.

3. DSR Standard Contractual Terms
DSR Workgroup 10th September 2014
DSR Standard Contractual Terms
Fixed volume, price, lead time at time of supply contract negotiation
This strikes a balance between shippers providing a route to market for customer DSR whilst maintaining operational focus at times of system stress
Performance assessed against day ahead nominations
Expectation that at least fixed volume is delivered
Non-delivery
No DSR payment to customer if the fixed DSR volume is not delivered (no pro-rating of payments)
Encourages customers to offer volumes they are confident in being able to deliver
Avoids more complex arrangements
Protects shipper balance positions
Provides National Grid with some confidence in likely delivered volumes