1 / 6

Incremental Entry Capacity Release Methodology Statement Review 2005

Incremental Entry Capacity Release Methodology Statement Review 2005. Transmission Workstream - 15th June 2005. Background. IECR describes methodology to be applied by Transco NTS for release of incremental capacity i.e. above obligated capacity in place since July 2002

orrick
Download Presentation

Incremental Entry Capacity Release Methodology Statement Review 2005

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Incremental Entry Capacity Release Methodology Statement Review 2005 Transmission Workstream - 15th June 2005

  2. Background • IECR describes methodology to be applied by Transco NTS for release of incremental capacity i.e. above obligated capacity • in place since July 2002 • Special Condition C15 paragraph 2 of NTS GT Licence: “…licensee shall before 1st July of each formula year prepare and submit for approval by the Authority an IECR methodology statement…”

  3. Proposed Amendments-Summary • Housekeeping Changes • New Licence References • Section 2 “Incremental Investment Costs” • Pipeline Costs Updated • Section 3 “Cost Calculation” clarifications • No Change to Methodology • Clarification of Investment Lead Times - “three years or more”

  4. Investment Lead Time-Issue • Three year lead time typically sufficient to physically deliver incremental capacity • Exceptional circumstances beyond NGT’s control may require more than three year lead time: • planning permission • construction challenges • unexpected requested volumes • Fixed 3 year lead time likely to give rise to inappropriate costs for NGT and Industry Can we clarify when more than three year lead time appropriate?

  5. Investment Lead Time-Proposal • If known pre-auction that greater than 3 years required • NGT to propose revised lead time to OFGEM indicating reasons • Ofgem could consult users with UCA proposal • If agreed, required lead time included in auction tender • If known post-auction that longer lead time required • NGT to propose revised lead time to OFGEM as part of proposal to release incremental capacity indicating reasons • process follows Special Condition C8B 14(5)(b) of GT Licence

  6. Consultation • Responses requested by 24th June 2005 to Nick Pittarello NGT House Warwick Technology Park Gallows Hill Warwick CV34 6DA • Email: Nick.Pittarello@ngtuk.com

More Related