Capacity Working Group III Development of GDNs Capacity Output - - PowerPoint PPT Presentation

Capacity Working Group III

Development of GDN’s Capacity Output Measures

Output Measures

In Development

Benefits:

1.Determined by Shipper bookings 2.Aligned with transportation charges 1.Reflects current dissemination of gas into highly complex lower pressure tiers 2.Capability floats relative to demand and available pressures 3.Consistent with DNO measures 4.GDN’s to develop consistent methodology

Benefits:

1.Determined by Shipper bookings 2.Aligned with transportation charges 1.Reflects current dissemination of gas into highly complex lower pressure tiers 2.Capability floats relative to demand and available pressures 3.Consistent with DNO measures 4.GDN’s to develop consistent methodology

Primary Measures: Delivery of future peak day demands Peak Day undiversified 1. Total Daily Metered Load

• a. ∑ Supply Point SOQ
• b. ∑ DM Supply Point SHQ

Peak Day diversified 2. Total Demand (Diversified)

• a. by LDZ

Capability to meet 1 in 20 Peak Demand

• 3. Point to Point Distribution Capacity
• a. ∑ Capacity of NTS / LTS PRI’s

(MCM/d or GWh/d)

1. Methodologies consistent across industry (TD76) 2. Assumptions and interpretation unique to GDN’s own views

Output Measures

Primary Measure: Demand

Form of 1 in 20 Peak Demand Undiversified

Bottom up

Diversified

Top Down

NDM supply points ∑(NDMSOQ)1

n

n/a DM supply points ∑(DMSHQ)1

n

n/a LDZ n/a ∑ Forecast

Output Measures

Primary Measure: Capability

Pressure Reduction Installation NTS/GDN interface LTS PRI 1

NTS Offtake1 LTS PRI1

PRI 2

NTS Offtake2 LTS PRI1

PRI n

NTS Offtaken LTS PRIn

∑ PRI Capability

∑ NTS Offtake Capabililty ∑ NTS Offtake Capabililty Objective: GDN’s to develop a consistent methodology to calculate capacity for each of: NTS Offtake1 and LTS PRI1

Output Measures

In Development

Benefits: Benefits:

1. Tracks scale of network over time 2. Tracks the understanding of changes in dynamic behaviours

Secondary Measures Customers 1. Connected Customers

• a. ∑ Number of Supply Points
• b. ∑ Number of Smart Meter Point

References Embedded Supplies 2. Embedded Entry Points (Natural/Bio/Syn/CBM/Shale)

• a. Number of connections
• b. Connected capacity (Aggregate)

NTS Interface

• 3. Flat Exit Rights
• a. ∑ OCS flat rights (MCM/d or GWh/d)

Diurnal Management

• 4. Measures of diurnal tools
• a. ∑ OCS flex rights
• b. LTS Linepack capability
• c. LDZ storage capability
• d. 3rd Party Storage capability

1. Tracks changes from the historic top down dissemination of supplies 1. Tracks top down gas flows and NTS dependency 1. Tracks changes in consumer behaviours and diversity of tools in place

NTS/GDN Interaction

GDN Perspective

• Investment decisions
• Any GDN capacity investment identified now can be included in

the GDNs’ “well justified” business plans including any NTS interaction

• Any GDN capacity investment requirements arising during the

price control (i.e. 2013 to 2021) could be dealt with through a trigger mechanism (linked to a ex-ante allowance or reopener)

• Consideration of NTS solutions where applicable, can be included in this as

well as transfer of allowances etc

• The trigger mechanism should be achievable
• What is missing at present are defined NTS exit capacity solutions/products

for GDNs to consider in their investment appraisal, the NTS are progressing this

• The trigger could be designed and implemented as part of RIIO-

GD1 the requirement to consider NTS solutions can be “switched on” once the NTS have developed relevant capacity products

NTS/GDN Interaction

GDN Perspective (2)

• Commercial arrangements

– Unclear if the associated arrangements/processes would be in the RIIO‐GD1 scope wrt deliverables – Some of the issues e.g. OCS booking window are subject to existing consultation/discussions – Following discussions today (January 13) GDNs will come back with a common position for the next WG meeting