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I want to take gas on and off

In this section, we talk about your requirement to take gas on and off the system as and when you want to. We look at what’s important to you, the challenges ahead and potential costs. 

I want to take gas on and off the transmission system where and when I want 

A network and commercial framework that allows customers to take gas on and off the transmission system where and when they want, has many benefits for our customers and consumers of gas.

 We make it possible for a diverse range of supplies to come onto the network and this allows the cheapest sources of gas to reach the market, lowering energy costs for consumers and improving the security of supply.

As a joint transmission owner (TO) and system operator (SO), our activities under this priority include maintaining and operating our physical network, and the day-to-day processes that support the market.

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Golden Thread

Golden Threads demonstrate how the voice of our stakeholders is reflected in our business plan outputs. And how our business plan delivers value for consumers.

I want to take gas on and off the transmission system where and when I want 

Investment Decision Packs
Business Plan Annexes

Gas System Operator Summary Annex
We have created a summary of our Gas System Operator (SO) to clearly articulate the role of the SO as part of the combined TSO (Transmission System Operator), our role in the UK’s energy future and how we are setting ourselves up for success in RIIO-2 and beyond.

Gas on and off - Engagement log

 

Our proposal: Asset health

What our stakeholders told us:

 Reliable gas supplies are essential for consumers of gas. In particular, consumers of high quantities see reliability of gas supply as a major priority.

 

Commitment

Output type

 

Ensure we efficiently manage the network to be able to meet a 1 in 20 peak demand severe weather event.

Licence obligation

 

We propose a relative Network asset risk metrics (NARM) target to measure delivery of our asset health investments with a justified over and under delivery mechanism.

Our RIIO‑2 asset health plan delivers a monetised risk output of £2.96m (measured as a level of monetised risk as part of NARMs).

Price control deliverable, (£466m).  See annex A3.01 for further information.

We are proposing a separate PCD on asset health spend that is not covered by NARMs in the following areas:

relifing of compressor cabs, site fences, site roads and replacement/refurbishment of pipe supports, pits, lighting systems and switchboards.

Price control deliverable, (£87m) See table 14.09 below and annex A3.01 for further information.

Consumer benefit: 
 

Facilitating a diverse range of supplies onto the network helps in delivering security of supply and keeping wholesale prices as low as possible.

Providing high levels of reliability and resilience, protects against losses of gas supply for all consumers. It protects large consumers from any detrimental impacts on their business processes, finances, global reputations and long-term viability in GB. If connected parties can’t operate efficiently because of restrictions on the network, their increased costs will ultimately be passed on to end consumers.

By maintaining the most efficient network and linking with new or existing commercial framework and/or tools we can create additional value for stakeholders and consumers.

Our proposal: Bacton

 What our stakeholders have told us:

Stakeholders see a long‑term need for the Bacton terminal.

There is consensus that a re‑developed terminal will deliver the most efficient solution to our asset health challenges.

Commitment

Output type

Consumer benefit

We will redevelop the Bacton terminal to meet the future customer need and allow for potential future changes (e.g. connection of storage or compression if required and the facilitation of decarbonisation). Once the redeveloped terminal is operational, the existing terminal will be decommissioned.  

Price control deliverable to reach FEED for the Bacton terminal (£4.7m). See annex A3.01.

 

Lower network costs compared to the alternative option of an extended and intrusive asset health programme.

Access to gas supplies, providing security of supply and helping keep wholesale gas prices as low as possible.

Redeveloping the terminal would also reduce the amount of gas at the Bacton site, moving from a top tier COMAH site to a lower tier COMAH site, reducing ongoing compliance costs for consumers.

Uncertainty mechanism to be used to adjust the requested baseline funding for the terminal redevelopment, once the final terminal design is confirmed and there is a more accurate view of the costs.

Uncertainty mechanism (£139.6m) Trigger: Year 1 (end of FEED). See annex A3.02.

UM to be used to set a second PCD for delivery of the final design.

Adoption of an uncertainty mechanism around the costs of redeveloping the terminal gives consumers cost protection from this uncertainty.

 

Our proposal: King's Lynn

What our stakeholders have told us:

They see a long term need for capability at the Bacton site (King’s Lynn site supports delivery of this) and we should meet all our safety obligations.
 

Commitment

Output type

We will build a new bi‑directional area within the boundary of the existing King’s Lynn site. This will remove any reliance on existing pipework, which is under stress due to ground subsidence.

Price control deliverable to reach FEED (£1m). See annex A3.01.)

 

Reopener to be used to adjust the funding allowances once the final design is confirmed and there is a more accurate view of costs.

UM to set a second PCD for delivery of the final design. (£30.2m) Trigger: Year 1 (end of FEED). See annex A3.02.

Consumer benefit: 

Removes the risk of constraining import or export flows at Bacton and any limitations on operation of the network. This provides the GB gas market with access to gas supplies, improves security of supply and helps keep wholesale gas prices (ultimately prices to consumers) as low as possible.

Consumer benefit 
Removes the risk of constraining import or export flows at Bacton and any limitations on operation of the network. This provides the GB gas market with access to gas supplies, improves security of supply and helps keep wholesale gas prices (ultimately prices to consumers) as low as possible.

 

Our proposal: Asset Management

Commitment

Output type

Consumer benefit

Our asset management activities will continue to be led by good asset management principles and we will continue our external accreditation to ISO55001.

We will ensure we have the right level of human resource, trained with the right capabilities, supported by the tools, vehicles, spares and IT systems, to efficiently deliver customers’ requirements.

Commitment

Efficient management of costs, lowering consumer bills.

 

Contribute towards the joint gas networks emergency response and enquiry service.

Licence Obligation

Ensure gas is available as and when consumers want.

Our proposal: Network resilience

What our stakeholders have told us

Commitment                                                       

Output type

Consumer benefit

xxxxxx supports our proposal for transmission investment to increase resilience of supplies to the Blackrod offtake

Deliver a new ~1km, 900mm pipeline and a new AGI . xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Commitment

Blackrod provides a consumer value proposition valued at £173m (for more information on CVP1 please see annex A10.05).

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Increased ability to undertake planned and unplanned maintenance without disruption to gas supplies/operational pressures to customers in the North West.

N/A for Tirley

Install new isolation valves that will allow individual filters at the Tirley site to be isolated and maintained. 

Commitment

Reduced risk of planned or unplanned disruption associated with filter maintenance at Tirley.

Increased security of supply and market access to diverse gas supply sources, resulting in lower costs for all consumers.

Our proposal: Environmental resilience

What our stakeholders have told us

To adopt a proactive or risk‑based approach to the management of environmental risks.

Commitment

Output type 

In response to feedback we are taking a risk‑based approach to managing the threats associated with pipeline watercourse crossings.

We will undertake condition‑based monitoring surveys of pipeline watercourse crossings to identify whether the pipeline is at risk of additional loading, impact from reduced depth of cover, exposure or free‑spanning. The drivers for this work are compliance with the Pipelines Safety Regulations 1996 and meeting the minimum requirements in the industry standard IGEM/TD/1.

Commitment

We will continue to maintain watercourse navigation markers in accordance with our obligations under the Merchant Shipping Act 1995.

Commitment

We will undertake work to assess the risk of buoyant lift on our pipelines in the event of flooding, building on our 2012 survey work.

Commitment

Consumer benefit:

Minimising risk of unplanned disruption of supply to gas customers and consumers.

Minimising risks of unplanned disruption to gas entry customers, ensuring consumers have security of supply and access to the cheapest sources of gas.  

Our proposal: Gas system operation

What our stakeholders have told us: 

They have told us they value being able to flow gas without restriction

Commitment

Output type

Consumer benefit

Efficient operation of the system we will continue to drive efficiency, understand and meet customer needs using the assets and commercial tools available to us.

Commitment

Efficient and safe operation of the network and associated commercial processes.

 

Maintaining IT systems continue to invest in our core IT systems[1] to ensure they stay secure and up to date while delivering the level of performance required by the stakeholders we share data with. We must also maintain the non‑CNI systems that support day‑to‑day processes for capacity management, balancing and information provision.Commitment

Efficient and safe operation of the network and associated commercial processes.

Building new capabilities we want to exploit technologies to develop new capabilities that can drive greater value for consumers from the networks and markets, we plan to[1]:

  • develop enhanced analytical and modelling tools to improve our insight to manage risks effectively
  • take advantage of automation where it is cost‑effective to do so.
Commitment

Efficient operation of the network and associated commercial processes ensures consumers have the gas supplies they need at the lowest possible price.

 

What our stakeholders have told us:

Get the right incentive framework to deliver maximum benefit to consumers

 

Please see annex A3.03 for further information on our incentive proposals.

Commitment

Output type

Consumer benefit

Residual balancing

Retain scheme to drive minimisation of energy costs to operate the network. Our proposals are tougher to achieve against, recognising the impact of a changing energy landscape and we propose amending the. linepack component of the scheme to drive the right behaviour during seasonal transitions between winter and summer.

ODI Current proposed cap £1.6m / collar £2.8m pa

Target (LPM): 5.6 mcm/d (shoulder months) and 2.8mcm/d (non-shoulder months)

Target (PPM):1.5% SAP

Efficiency of residual balancing activity, minimising impacts on the market, customers and ultimately cost to end consumers.

Incentive integral to our role as residual balancer.

Maintenance (use of days and changes schemes)

Retain existing schemes and expand to cover the wider range of maintenance activities supported by stakeholder feedback. Our schemes will be tougher to achieve against, recognising that the volume of planned maintenance is likely to be higher in RIIO‑2. Proposed expansion to include non-remote valve operation (RVO) maintenance.

ODI Current proposed cap £1.2m / collar £1.5m pa

Targets: Use of days – 11, Changes 7.25%

Alignment of maintenance plans with customers to minimise potential disruption to them and wider markets. Ultimately reducing costs for end consumers.

Entry and exit capacity constraint management

Retain scheme. Remove a level of risk which represents “BAU” from cost target.

Remove revenue from scheme where we scale back interruptible/off-peak capacity.

 

ODI

Efficient activities to avoid and manage constraints (i.e. provide the unconstrained access required by customers). This reduces overall costs and risks for consumers. Incentive integral to capacity regime (e.g. incentive efficiently managed risk associated with overselling capacity).

 

Hands on table working on National Grid Gas RIIO-2 business plan

How you shaped our business plan

Here you can find information about how we consulted with our stakeholders on our business plan.

This includes webinars, reports and consultation documents and blogs supporting our business planning activities.

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