1. IECR Incremental Step Size
Transmission Workstream, 5th November 2009

2. Background
The Incremental Entry Capacity Release Methodology Statement:
provides the rules by which National Grid will consider the release of incremental entry capacity.
defines incremental step sizes which are offered at the QSEC auction.
provides a methodology to determine the number of incremental steps and the step size.
For a new ASEP the minimum step size is 15 GWh
When the IECR was first drafted this value was considered sufficiently small for any anticipated new and increased supplies.

3. Potential Developments
New ASEPs have been identified that
may bid in the QSEC auction in March 2010.
will have a low peak gas input (<15 GWh).
hence may have to bid for significantly more capacity than they need.
table below shows extent of potential over-bidding required.
Maximum capacity required by operator
Incremental capacity bid level needed under current IECR
Level of excess capacity bought
5 GWh/day
15 GWh/day
200%
7.5 GWh/day
100%
20 GWh/day
30 GWh/day
50%
286 GWh/day
300 GWh/day 5%

4. National Grid is proposing to revise the IECR:
Proposal
National Grid is proposing to revise the IECR:
such that the minimum incremental step size for new ASEPs is no lower than 5GWh (currently 15GWh) (paragraph 82).
smaller increments are allowed for existing ASEPs.
to improve the drafting of paragraph 82.
does not change the meaning (except as above).
to remove the references to P0 prices being set to zero (paragraph 84 and footnote).
following implementation of GCM17.

5. Consultation Action Date Consultation started 13th October 2009
Consultation closes
10th November 2009
Replies to be sent to: and cc to:
IECR proposals submitted to Authority for approval
17th November 2009
Latest date for Ofgem decision
13th January 2010 (earlier if QSEC held at start of month)
Notification of charges for QSEC auction (including step prices)
1st / 15th January (to be confirmed)