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Modification Proposal 0273 – “Governance of Feasibility Study Requests to Support Changes to Network Exit Agreements”. Richard Fairholme, E.ON UK. What does the Modification Proposal cover?.

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slide1

Modification Proposal 0273 – “Governance of Feasibility Study Requests to Support Changes to Network Exit Agreements”

Richard Fairholme, E.ON UK

what does the modification proposal cover
What does the Modification Proposal cover?
  • “Feasibility” / engineering studies conducted by Transporter to analyse impact of request by Shipper to changes to, or application for, a Network Exit Agreement (NExA) (e.g. increase to ramp rate / max. gas offtake rate).
  • Shippers request (and fund) such studies from National Grid NTS / DNs.
  • Can only move to formally agreeing (change to) NExA once engineering study process complete.
slide3

The Current Feasibility Study “Headache”

How much will it cost?

Delays bringing on new generation plant or capability

How long will it take?

Delays in meeting increased I&C customer gas demand

Delays in bringing gas storage to market

How many studies will I need?

what is proposed
What is Proposed?

To support NExA applications / modification applications, it is proposed that:

  • A standard application form to be used for submitting requests by Shippers.
  • A standard set of terms and conditions where studies required to be made available by the Transporter(s).
  • Fixed (or variable) costs for different categories of applications - varying according to size, type and location of project.
  • Study supporting NExA change application to be completed within 3 months. If required, any additional studies to be completed within a further 3 months (i.e. a maximum of 6 months in total).
  • Expected to apply to both National Grid NTS and the Gas Distribution Network Operators (above 7 barg connections).
what is not proposed
What is NOT Proposed?
  • Any amendment to existing “Siteworks” process for connections to DNs.

- Covers connections less than 7 barg.

benefits for shippers of this proposed new process
Benefits for Shippers of this Proposed New Process

Less time spent negotiating with the Transporter.

Able to bring projects to the market more quickly.

Better able to plan projects & able to make more efficient decisions.

Similarity to CUSC arrangements in electricity should make process easier to understand (particularly for new entrants).

Ensures all Shippers are treated equally.

Overall, less Shipper FTE requirement for progressing NExA applications / modification applications.