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User Compensation for NEC Storage Curtailment – Draft Proposal

User Compensation for NEC Storage Curtailment – Draft Proposal. Transmission Workstream 01/12/2005. National Grid Transmission 0052 response. Concerned about reduction in incentive for 0052 shippers and potential for increased role for Residual Balancer Is 30 day SAP appropriate compensation.

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User Compensation for NEC Storage Curtailment – Draft Proposal

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  1. User Compensation for NEC Storage Curtailment – Draft Proposal Transmission Workstream 01/12/2005

  2. National Grid Transmission 0052 response • Concerned about reduction in incentive for 0052 shippers and potential for increased role for Residual Balancer • Is 30 day SAP appropriate compensation

  3. Aims • Appropriately compensate Users affected by Storage Curtailment • Ensure that Users remain incentivised to contribute to the physical balance of the system • Recognise that title to the gas held in Storage remains with the User

  4. Proposed Compensation Amount Lesser of: SMPBuy – SAP or SAP – (ASSAP + 0.0611p/kWh) Where, ASSAP (average summer SAP) 0.0611p is the mod 0433 derived minimum differential between SMPBuy and SMPSell

  5. Example User Injects 25 units between curtailment periods 1st Curtailment Period 2nd Curtailment Period

  6. Example

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