RIIO-T1 and GD1: Draft licence conditions – First informal ... - Ofgem

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RIIO-T1 and GD1: Draft licence conditions – First informal licence drafting
consultation
� removed outdated date references in paragraphs 3, 5 and 6 of the current
condition), and
� replaced the word „economic‟ with „economical‟ so the condition is consistent
with section 9 of the Gas Act 1986.
3.11. Also, for paragraph 36.6 NGGT have suggested inserting “…or such later date
as the Authority may approve in writing” before “a System Management Principles
Statement”. We do not think this is needed because paragraph 36.33 allows for a
power of derogation.
3.12. There are also several areas in the updated condition that will require further
work ahead of the Second Consultation. These are as follows.
Part D
3.13. We note that further changes are likely as part of the ongoing work to develop
SO incentives to be implemented from April 2013 [ref link], and to address the
related issue raised by NGGT that a System Management Services Adjust ment Data
methodology may no longer be needed because the information is already covered
within the UNC or by the existing Charging Methodolog ies.
3.14. While we recognise that NGGT may not provide this information currently, one
of the areas that we are looking at in respect of developing SO external incentives is
ensuring that the information that NGGT provides, both to the Authority and to the
market, in respect of the actions that it takes is fit for purpose.
3.15. On this basis, as part of developing SO external incentives, we will be looking
to ensure this condition is drafted appropriately as we continue reviewing the SO‟s
role, outputs and incentives.
Paragraph 36.24(c)
3.16. NGGT has raised concern that the current definitions of “NTS Exit Flat
Capacity” and “NTS Exit Flow Flexibility” in SpC A3 are no longer appropriate. We
would welcome views on what the new definitions should be.
Special Condition C7: Charging obligations [GTC 49]
Drafting Status: We will provide an update on what, if any, changes are required to
be provided in this area in the Second Consultation.
3.17. This condition sets out amendments to SSC A4 and A5. We will consider what,
if any, changes are required to this condition and provide an update in the Second
Consultation.