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DN Interruption & Charging

DN Interruption & Charging. Simon Trivella – 27 March 2008 Distribution Workstream. Issues. DNPC03 LDZ System Charges Implementation Failure to Interrupt (GDF Draft Modification) >15 Days Interruption payment Ratchet Charges Interruptible Firm Allowance & Capacity Rights

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DN Interruption & Charging

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  1. DN Interruption & Charging Simon Trivella – 27 March 2008 Distribution Workstream

  2. Issues • DNPC03 LDZ System Charges Implementation • Failure to Interrupt (GDF Draft Modification) • >15 Days Interruption payment • Ratchet Charges • Interruptible Firm Allowance & Capacity Rights • Consent to Modify (C022)

  3. DNPC03 LDZ System Charges Implementation • 1st October 2008 Implementation • 95:5 Capacity Commodity • Interruptible Capacity Charges (47.37%) • Two options for implementation • Additional Charging functions in UNC TPD Section B1.7 • Expanded LDZ Capacity Charge table within Charging Statement

  4. DNPC03 LDZ System Charges Implementation • Preferred option to expand Charging Statement • No UNC Modification Required to TPD Section B1.7 • “Applicable Annual Rate” definition holds • Transitional Period only • Interruptible Supply Points exempt from Capacity Charges • UNC TPD G6.1.9(a) “…not be required to pay NTS Exit Capacity Charges and LDZ Capacity Charges” • UNC Modification required

  5. Failure to Interrupt (GDF Draft Modification) • Currently 1st Day Charge • 2 times the Applicable Annual Rate of Firm LDZ Capacity • Introduces 90% charge increase • GDF Proposal • 2 times Applicable Annual Rate (47.37%) • Aligned with preferred DNPC03 Implementation Option • Introduces 10% charge decrease

  6. Failure to Interrupt (GDF Draft Modification) • Alternative Solution • 2 times the difference between the Firm and the Interruptible Applicable Annual Rate • 2 x (FAAR – IAAR) • Failure to Interrupt Charge remains the same • Independent from 95:5 (future proof)

  7. Failure to Interrupt (GDF Draft Modification)

  8. Failure to Interrupt (GDF Draft Modification) • Alternative Solution • UNC Modification to include amendment to UNC TPD G 6.1.9 • Enduring Arrangements • UNC TPD G 6.10.2 (1st April 2008, effective 1st October 2011 • 2 x kWh x Z • Z is the greater of the Applicable Annual Rate (LDZ Capacity) and the weighted average Overall Interruption Price • Suggest a review of this following 2008 tender process

  9. >15 Days Interruption payment • UNC TPD Section G 6.1.9(b) • User entitlement to a payment • Calculated as prescribed in the Transportation Statement • Currently 1/15th of the ‘avoided charge’ • Amended to be 1/15th of the (FAAA – IAAA) • Enduring Arrangements • Payment no longer applicable (1st October 2011)

  10. Ratchet Charges • UNC TPD Section B 4.7 (Supply Point Ratchet) • Mod 0090 Amendment to B4.7.1 removes ‘Firm’ from eligibility criteria (1st April 2008) • UNC TPD Section B 10.1.4 (Transitional Arrangements) • In TPD Section B4.7.1 and 4.7.8(a) the reference to a DM Supply Point Component shall be treated as a reference to a Firm DM Supply Point

  11. Interruptible Firm Allowance & Capacity Rights • UNC TPD Section G 1.15 • Current ‘IFA’ arrangements • UNC TPD Section G 10.4 (from 1st April 2008) • Current arrangements apply until 1st October 2011 • Enduring Arrangements • IFA arrangements cease

  12. Interruptible Firm Allowance & Capacity Rights • Interruptible Supply Points no Capacity rights • Transitional Arrangements remain the same • Enduring arrangements – All sites Firm • Interruptible LDZ Capacity Charge • Introduced from Transitional period as a consequence of DNPC03 • Interruptible sites remain without Capacity rights

  13. Consent to Modify (C022) • Amendment to Mod 0090 Legal Text • Removal of superfluous references to the ICM • Defined interruption transition date (1st October 2011) • Defined interruption transition period (1st April 2008) • Renumbering of paragraphs due to non-implementation of Mod 0116V • Other minor changes (summary appendix provided)

  14. Thank You Questions / Comments

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