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Capacity Methodology Statements

Capacity Methodology Statements. Transmission Workstream 5 th July 2007. Capacity Methodology Statements. Methodology Statement – Timetable. Consultation on the proposed Entry Capacity Substitution Methodology Statement. Key concerns expressed: Loss of capacity at the donor ASEP

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Capacity Methodology Statements

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  1. Capacity Methodology Statements Transmission Workstream 5th July 2007

  2. Capacity Methodology Statements

  3. Methodology Statement – Timetable

  4. Consultation on the proposed Entry Capacity Substitution Methodology Statement Key concerns expressed: • Loss of capacity at the donor ASEP • Makes new projects expecting to use “spare” capacity less viable. Impact on Security of Supply. • Storage contracts are generally of short duration. User unable to signal long term requirements to prevent capacity being substituted away. • May lead to inefficient investment decision as Users bid to protect capacity normally obtained short-term. • Loss of Total Capacity • Generally a limit on exchange rates preferred. • Most respondent unable to specify a precise rate, but 1:1 and 1.5:1 suggested.

  5. Consultation on the proposed Entry Capacity Substitution Methodology Statement Key concerns expressed: • Scope of Substitutions. • Capacity substitutions limited to within zone to reserve capacity for within zone transfers and trades. • Substitutions should be applied to incremental requests irrespective of whether the NPV test is passed. • Adverse impact on short-term markets. • Concern that proposals may have an adverse impact of availability of NTS exit capacity, particularly flexibility capacity.

  6. Consultation on the proposed Entry Capacity Substitution Methodology Statement Key concerns expressed: • Comments on Detail of Proposed Process • Use of lowest revenue driver to identify recipient ASEP • Should the process aim to avoid “material” or “incremental” risk? • Exchanges should be assessed against “peak” flow analysis. • Definition of zones – storage ASEPs should be separate from non-storage.

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