Assignment of NTS Entry Capacity Background and UNC Obligations

1
Assignment of NTS Entry Capacity Background and
UNC Obligations

• Assignment Workstream, 7th April 2009

2
Background

• National Grid NTS has been asked by the Industry
  to consider the concept of NTS Entry Capacity
  Assignment
• the transfer of financial liability in addition
  to the entry capacity entitlement
• The concept of NTS Entry Capacity Assignment has
  been discussed at the following forums
• Transmission Workstream
• Review Group 221
• Though there has been some discussion of Industry
  requirements no consensus has been reached
• Whilst there are some Assignment provisions
  within the UNC National Grid NTS has consistently
  stated that an Assignment process of the
  complexity indicated by the Industry would be
  subject to the User Pays process.

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UNC Obligations

• UNC General Terms Section B6.1 (Please note that
  these terms are not specific to NTS Entry
  Capacity but to a generic assignment of the Users
  Account)
• A User may assign all its rights under the
  Uniform Network Code
• Agreement in writing must be sought from the
  relevant Transporter
• Where the assigning party is a Shipper they may
  only assign to another Shipper
• The Assigning party may not assign their credit
  limits such limits must be determined separately
  for the assignee
• The assigning User is liable for all obligations
  that have accrued up to the date of which the
  assignment takes place
• After assignment the obligation to pay for the
  entry capacity rights lie with the assignee

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UNC Obligations

• National Grid NTS believes that NTS Entry
  Capacity Assignment has the following
  characteristics
• It can only be made between two parties (there
  are no provisions for partial assignment)
• All the NTS Entry Capacity rights must be
  assigned as part of an Account Assignment
• It applies across all ASEPs