Review Group -140

Thoughts on additional information requirements

• As Transmission System Transporter National Grid Gas undertakes responsibility for safe, effective and efficient operation of the system

• Licence obligations and SO Incentives which relate to this activity

• Actions taken by the SO have a direct bearing upon Users of the Transmission System both commercially and physically

• The manner in which the system is configured has significant impact upon the capability to transport gas

• Longer term, impossible for Users to form objective view of true System capabilities

This is necessary to inform specific development and investment plans, as well as the ability to make a reasoned contribution to processes such as Price Control Reviews

• Regulator party to more detailed information on System Operation: wider publication of information will greatly add to the evaluation of the effective and efficient operation of the network by Users

Background

• Two key areas of focus:

• SO operations

• System Capability

Background

• Forecast maximum physical terminal capability on the day (e.g. to how close to TFA)

• Input pressures at every input point and storage connection point with no minimum threshold

• Exit point pressures initially to include DN offtakes only

• All compressor stations - information on suction pressure, discharge pressure, flow rates, power and flow direction

actual compressor running hours, by machine amount of compressor fuel consumed by day compressor stops and starts

• Exit flow rates at LDZs Interconnectors Storage sites NTS connected DM sites

• Pipeline pressure limits

• Feeder flows and known constraint points: publication of gas flows (actual if metered, estimated if not) at specified points. Include max physical flow possible based on specified pressure assumptions at inlet and exit to the pipeline, and actual flow

System Operator Information required

• Increasing requirement for information on Capacity e.g. to understand system capability

• Especially relevant with introduction of Capacity Trades, Transfers, and Substitution

• Information starting to become available as part of the above processes

• need to formalise within this review group

• Requirement for a matrix/model setting out system capability by ASEP on different demand days

• Also, on the day system capability by ASEP based upon NG forecast demand

System capability information required

• Provide level playing field across entry points Currently only terminal operators have sight of their input pressures

• Enable parties other than transporters to begin to model NTS and provide constructive

feedback

• Enables more informed input to discussions Price Controls True system capability (e.g. entry baselines etc)

• Discovery of appropriateness of SO incentives Is system managed to best effect for Users? Is system managed to best effect for SO incentive payments? Are these currently aligned?

• Taking part in Trades, transfers process and understanding impacts of substitution

Why

• Tension between SO Incentives and transparency?

• Current information provision What’s available? How much is it used? Cost of new information provision vs benefit to industry All information on common platform?

• Gives rise to potential discrimination between players (e.g. shippers or end users)

•Timing of publication Forecast (e.g. day ahead) Near real time After the day (e.g. D+1)

Issues