Interruption Service strawman

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Interruption Service strawman

• Peter Bolitho

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Lose it or pay more for it service

• Up-front offer is compliant with Regulation 1775
• Facilitates use of spare capacity and greater
  utilisation of NTS.
• Ensures interruptible users are genuinely
  interruptible.
• Meets the needs of storage and interconnector
  users as well as those using NTS for back-up
  supplies.
• Provides an anti-hording mechanism and
  facilitates spot purchases at shared supply
  points and interconnectors.
• Does not require changes to Gas Emergency
  Procedures or NG NTS Safety Case.
• Could co-exist with a buy-back regime for firm
  capacity but probably avoids the need for such a
  regime.

Offers a pragmatic, proportionate solution to
perceived problems with NTS interruption regime
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Lose it or pay more for it service features

• Current UNC terms with added safeguards to test
  whether shippers make use of peak capacity.
• Removal or increase the maximum number of
  interruption days.
• Reclassification as firm (or firm component
  increased) if gas is offtaken on a 85 of the
  10 Year Statement 1 in 20 peak day system demand.
• Reclassification only applies where NG NTS has
  given D-1 notice that interruption is likely in
  a given area.
• Firm charges become payable for the last 12
  months.
• Existing capacity reduction procedures apply
  following reclassification.

Shippers can make an informed commercial
decision whether to offtake gas on peak days
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Days exceeding of 1 in 20 demand
Short-term NTS Demand side response? (40 to 50
mcmd)
1996 1997 1 in 20 data not readily available
1998 data used
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