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Transmission Workstream – Partial Assignment. 03 September 2009. Background . Mod 0195AV introduced the concept of assigning NTS Exit (Flat) Capacity from one User to another at the same NTS Exit Point. All or nothing Permanent unless assigned to another User at a later date
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Transmission Workstream – Partial Assignment 03 September 2009
Background • Mod 0195AV introduced the concept of assigning NTS Exit (Flat) Capacity from one User to another at the same NTS Exit Point. • All or nothing • Permanent unless assigned to another User at a later date • Registered Capacity only i.e. does not include any trades procured but does include any capacity that has been traded out • Liabilities become responsibility of Assignee (buying User) • ExCR (rule 70) details impact of Assignment on User commitment.
ExCR rule 70 • “…Where a User is registered with capacity that was initially: • reserved by a Reservation Party via an ARCA; or • registered to another User and has been assigned to the other User; the User Commitment will transfer to that new User. The new User’s User Commitment shall be to remain the registered User of the additional capacity allocated plus any existing capacity allocated to that User at that NTS Exit Point for a period starting on the later of either; …”
Mod 263 - Benefits • National Grid NTS believe that this Proposal enhances and builds upon the Assignment / Trading arrangements introduced as part of Modification Proposal 0195AV. • Enables efficient utilisation of NTS Exit Flat Capacity reducing the possibility of National Grid NTS receiving unnecessary and inefficient signals • Enables Users to better reflect User changes at NTS Exit Points with more than one User. • Provides greater flexibility to Users • May reduce daily NTS Exit Flat Capacity requests, reducing National Grid NTS’s administrative workload
An NTS view of partial assignment ….. • Remove Annual from partial assignment, shorter term requirements can be met via trading. • Detail impact on User Commitment • In National Grid NTS’s view no change to current ExCR i.e. if Assignee has existing capacity with no User Commitment but assigned quantity has User Commitment associated to it the whole amount becomes User Committed. Ensures User Commitment applied consistently to avoid principles being undermined. • Options and forwards rules i.e. are they assigned first or last or don’t allow these quantities to be assigned or no assignment allowed? • National Grid NTS’s initial view is to assign last i.e. User holds 10, has a 2 unit forward contract, assign 8 the 2 forward stays, if assign 9 – 1 stays but 1 unit of the forward is also assigned. • Allow assignments of trades that form part of a Users registered holding i.e. those that have been sold. • Rules would need to be developed in terms of when the trade was assigned • Re-state existing timescales for Assignment process, as per 0195A
Mod 263 – NTS’s understanding • The following is based on National Grid NTS’s understanding from the Modification Proposal and discussions at workstream. Our view is that Mod263 and the impact of partial assignment is significantly different to full assignment. • Principle to introduce partial assignment • Assign Annual prior to Enduring Annual • Need to specify whether / which part of User Commitment is moved • Permanent Assignment • Will not include any trades / not allow any assignment when a trade has been registered ? • Silent on forwards and options and the process timeline
Systems – potential impacts • Modification 263 would require capacity to be “tagged” to enable partial assignment • Required for User Commitment • Introduces complexity • Initial National Grid NTS view of costs (TBC)
