Reinstatement of NTS Interruption

1
Reinstatement of NTS Interruption

• 6th November 2008

2
Background

• Modification Proposal 0090 Revised DN
  Interruption Arrangements removed existing DN
  and NTS Interruption arrangements from October
  2011
• Enduring arrangements for NTS Interruption from
  October 2011 were to be set out in Mod 0116
  Reform of the NTS Offtake Arrangements
• Competition Commission ruling on the approval of
  0116V has delayed the start of the enduring NTS
  regime
• There is therefore no access to NTS Interruption
  beyond October 2011

3
Impact of the Inability to Access NTS Interruption

• All NTS Interruptible load effectively goes Firm
• Significant additional transportation capability
  would be required
• Timescales to construct this capability are
  insufficient
• GNCC would be unable to use NTS Interruption to
  manage system constraints
• Use of Operating Margins gas or entry capacity
  buybacks may be less economic than Interruption
• Efficiency of the operation of the Total System
  may be reduced
• Increased probability of a constraint leading to
  a Network Gas Supply Emergency

4
Proposed Next Steps

• Raise a Modification Proposal to change the UNC
  Transitional Document Section IIC to retain the
  ability for National Grid NTS to access NTS
  Interruption beyond October 2011
• Use of NTS Interruption as an economic and
  efficient commercial tool for constraint
  management can continue until alternative tools
  are introduced through Exit Reform