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DN Interruption & Charging

This document discusses the DNPC03 LDZ System Charges implementation effective October 1, 2008, addressing key issues related to interruption payments, interruptible firm allowances, and capacity rights. It outlines the transition from current arrangements, the impact of charges, and proposed modifications under UNC TPD Sections. Important topics covered include failure to interrupt payments, capacity charges, transitional arrangements, and the requirement for UNC modifications. Insights into proposed solutions and alternative approaches, including revisions to payments, are also addressed, alongside implications for interruptible supply points.

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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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