1. Transmission Workstream – 6th July 2005
Incremental Entry Capacity Release Methodology Statement Review Update
Transmission Workstream – 6th July 2005

2. Investment Lead Time – Industry Views
Desire for certainty pre-auction to understand implications of any bids
Where not physically possible to deliver capacity within 3 years sensible not to expose NGT/industry to risk of large buy-back costs
Clarity on circumstances in which Transco NTS would use any pre-auction flexibility

3. Revised IECR Proposal Removed post-auction process
Retained some flexibility pre-auction
for exceptions, not the norm
apply where normal timescales on consenting and construction process very unlikely to hold
Consider that UNC Mod Proposal required to ensure consistency
B2.2.2(c) – Modify annual invitation requirements so do not have to offer “not less than 150% of baseline” for relevant period
Considering other changes consistent with desired principle of providing clarity pre-auction….

4. Restriction on offering for sale unsold entry capacity - Proposal
Limit offering for sale unsold entry capacity under B2.1.5(c) where Transco NTS assesses
significant risk that unable to physically deliver all or part of the unsold capacity if allocated; and
expectation that previously allocated capacity would need to be bought back at same entry point
Avoid NGT/industry exposure to potentially high buy-back costs