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Incremental Entry Capacity Release Methodology Statement Review 2005 - Update

Incremental Entry Capacity Release Methodology Statement Review 2005 - Update. Transmission Workstream – 6 th July 2005. Investment Lead Time – Industry Views. Desire for certainty pre-auction to understand implications of any bids

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Incremental Entry Capacity Release Methodology Statement Review 2005 - Update

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  1. Incremental Entry Capacity Release Methodology Statement Review 2005- Update Transmission Workstream – 6th July 2005

  2. Investment Lead Time – Industry Views • Desire for certainty pre-auction to understand implications of any bids • Where not physically possible to deliver capacity within 3 years sensible not to expose NGT/industry to risk of large buy-back costs • Clarity on circumstances in which Transco NTS would use any pre-auction flexibility

  3. Revised IECR Proposal • Removed post-auction process • Retained some flexibility pre-auction • for exceptions, not the norm • apply where normal timescales on consenting and construction process very unlikely to hold • Consider that UNC Mod Proposal required to ensure consistency • B2.2.2(c) – Modify annual invitation requirements so do not have to offer “not less than 150% of baseline” for relevant period • Considering other changes consistent with desired principle of providing clarity pre-auction….

  4. Restriction on offering for sale unsold entry capacity - Proposal • Limit offering for sale unsold entry capacity under B2.1.5(c) where Transco NTS assesses • significant risk that unable to physically deliver all or part of the unsold capacity if allocated; and • expectation that previously allocated capacity would need to be bought back at same entry point • Avoid NGT/industry exposure to potentially high buy-back costs

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