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Assignment Workshop 2

Assignment Workshop 2. 16 th September 09, Solihull. Overview. Background ROM 1387 ROM 1585 ROM Analysis Explanation Questions. Background. National Grid NTS has had a number of discussions with Industry about the concept of NTS Entry Capacity Assignment:

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Assignment Workshop 2

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  1. Assignment Workshop 2 16th September 09, Solihull

  2. Overview • Background • ROM 1387 • ROM 1585 • ROM Analysis Explanation • Questions

  3. Background • National Grid NTS has had a number of discussions with Industry about the concept of NTS Entry Capacity Assignment: “ NTS Entry Capacity assignment entails the transfer of financial liability in addition to the entry capacity entitlement ” • National Grid NTS raised 2 Rough Order of Magnitudes (ROMs) with xoserve: • EVS1387 • EVS1585 • Please note that a ROM request is not based on formal systems analysis and is not a replacement for a detailed analysis and must not be taken as a formal quote

  4. ROM EVS1387 – Generic Assignment Process • ROM EVS1387 based on the following requirements: • User driven (NG or Shipper) • Applicable from a future date • On an enduring basis • Includes both full and partial assignment • Assigned NTS Entry Capacity to be tradable • Assigned NTS Entry Capacity to be tracked

  5. ROM EVS1585 – As part of Voluntary Discontinuance • Deliver National Grid NTS’ UNC obligation • To facilitate the voluntary discontinuance of a redundant shipper short-code • Requirements of ROM EVS1585 • Enable the assignment of long term entry capacity rights as part of an assignment of rights and obligations – not as an assignment of NTS Entry Capacity. • The existence of long term entry capacity entitlement and liabilities are assigned to 1 single specified shipper

  6. ROM Process Presented by xoserve

  7. ROM Process Overview (1) • A defined method to request and receive appropriate analysis to support the development of industry changes. • It has been incorporated into MOD 213. • A light process that balances flexibility and control • A process capable of aligning to the needs and timelines of industry change processes (subject to resources and priorities)

  8. ROM Process Overview (2) • ROM requests should be timed in relation to the state of the proposed change; • Likelihood that the change will be supported / funded by the community and approved by the regulator • Clarity and stability of objectives, rules and requirements • Input needed to initiate ROM analysis; • As per ROM template: • Documented business objectives • Documented business principles • Documented draft business rules • Performance considerations .i.e. best estimate for… • Volumes for transactions / business events • Timeframe for transactional purposes

  9. Limitations of ROM exercise (1) • Following analysis of the business rules, a number of techniques are used to derive alternate estimates which are then used to specify the range of cost estimates. Techniques include: • Rough estimation by experienced solution experts • Identification of impacted and new logical functional elements and comparison to the equivalent functional elements for a previous project already costed. The comparison is used to extrapolate a ROM cost for the potential change.

  10. Limitations of ROM exercise (2) • The analysis is limited by time and is only a snapshot of xoserve’s understanding of the change at that moment. Consequently, • ROM costs are highly indicative; • Decisions to proceed to delivery should only be based on detailed cost analysis (DCA) obtained through the MOD 213 process.

  11. Next Steps

  12. Next Steps • Industry need to consider options for best fit and discuss within their workgroups • Develop business rules, system requirements, funding arrangements (etc) • When Industry in accord • Submit Draft Modification Proposal • Submit request to xoserve for Detailed Cost Analysis (DCA) via National Grid NTS

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