Capacity Working Group III Development of GDN’s Capacity Output Measures
Output Measures In Development Benefits: Primary Measures: Delivery of future peak Benefits: day demands Peak Day undiversified 1. Total Daily Metered Load 1.Determined by Shipper bookings 1.Determined by Shipper bookings a. ∑ Supply Point SOQ 2.Aligned with transportation charges 2.Aligned with transportation charges b. ∑ DM Supply Point SHQ 1. Methodologies consistent across industry Peak Day diversified (TD76) 2. Total Demand ( Diversified ) 2. Assumptions and interpretation unique to a. by LDZ GDN’s own views Capability to meet 1 in 20 Peak Demand 1.Reflects current dissemination of gas into 1.Reflects current dissemination of gas into 3. Point to Point Distribution Capacity highly complex lower pressure tiers highly complex lower pressure tiers a. ∑ Capacity of NTS / LTS PRI’s 2.Capability floats relative to demand and 2.Capability floats relative to demand and (MCM/d or GWh/d) available pressures available pressures 3.Consistent with DNO measures 3.Consistent with DNO measures 4.GDN’s to develop consistent methodology 4.GDN’s to develop consistent methodology
Output Measures Primary Measure: Demand Form of 1 in 20 Undiversified Diversified Peak Demand Bottom up Top Down NDM supply points ∑ (NDMSOQ) 1 n/a n DM supply points ∑ (DMSHQ) 1 n/a n LDZ n/a ∑ Forecast
Output Measures Primary Measure: Capability Pressure Reduction NTS/GDN interface LTS Installation PRI 1 NTS Offtake 1 LTS PRI 1 PRI 2 NTS Offtake 2 LTS PRI 1 PRI n NTS Offtake n LTS PRI n ∑ PRI Capability ∑ NTS Offtake Capabililty ∑ NTS Offtake Capabililty Objective: GDN’s to develop a consistent methodology to calculate capacity for each of: NTS Offtake 1 and LTS PRI 1
Output Measures In Development Benefits: Benefits: Secondary Measures Customers 1. Connected Customers 1. Tracks scale of network over time a. ∑ Number of Supply Points 2. Tracks the understanding of changes in b. ∑ Number of Smart Meter Point References dynamic behaviours Embedded Supplies 1. Tracks changes from the historic top down 2. Embedded Entry Points (Natural/Bio/Syn/CBM/Shale) dissemination of supplies a. Number of connections b. Connected capacity (Aggregate) NTS Interface 1. Tracks top down gas flows and NTS 3. Flat Exit Rights a. ∑ OCS flat rights (MCM/d or GWh/d) dependency Diurnal Management 4. Measures of diurnal tools 1. Tracks changes in consumer behaviours a. ∑ OCS flex rights and diversity of tools in place b. LTS Linepack capability c. LDZ storage capability d. 3 rd Party Storage capability
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
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