National Grid NTS along with industry stakeholders has started a review of the Capacity Access Regime in October 2019. This review aims to make processes simpler and explore different ways to access the existing capability of the network by reviewing the way capacity is made available.
The current entry and exit capacity arrangements for users to access the NTS were built on the foundations of an expanding gas transmission network. Historically, incremental capacity signals from long-term auctions would trigger investment on the NTS. Today, this environment has changed, we are not experiencing the capacity signals requiring expansion of the network we were 10 years ago. It is likely that we will see further changes within the next 10 years, with the potential introduction of new technologies and new sources of gas to the network such as Hydrogen. With this change in NTS use and the needs and behaviours of its users, there is requirement for a holistic review of the current capacity access regime, to ensure it can deliver on the needs of our customers and National Grid as TSO both today and in the future. At the October 2019 UNC Modification Panel, it was unanimously decided to send Capacity Access Review UNC 0705R to Transmission Workgroup.
At the beginning of the year National Grid launched an industry consultation which concluded in February 2020. The consultation aim was to seek the industry feedback on:
- Scope of the Capacity Access Review
- Approach taken to ensure that the long-term goals as well as solutions to short term problems are achievable (it includes Ambition Statement, Functions and Principles of the future regime)
- List of short-term issues which the review should aim to address
Please see the document for further details:Capacity Access Review (CAR) – Strategy Consultation.
We have received 14 responses to the consultation: Capacity Access Review (CAR)– Summary of responses. Our response to feedback received can be found in the CAR Webinar presentation 11 March 2020 pack below.
Guided by the industry, we have developed a list of short-term issues which the review will aim to address. These have been grouped in to work-streams and include:
- Overruns – review of the Overrun charge multiplier
- Signalling and Allocation of Capacity – review of User Commitment, PARCA, Substitution and development of Zonal capacity arrangements
- Capacity Products and Auctions – review of new products required and/or making products redundant
- Trading – development of transferable capacity product and/or review of liability of traded capacity
For full details of the progress made to date, please follow the link to the Joint Office website.
We organize regular webinars to keep wider industry informed of the progress. The next webinar will take place in July (date TBC). Please email us if you would like to be added to the list of participants.
If you would like to engage with us with regards to Capacity Access Review developments, please email us:
Jennifer Randal, Commercial Code Change Manager, [email protected]
Anna Stankiewicz, Commercial Code Change Lead, [email protected]
Jonathan Baggot, Commercial Code Change Lead, [email protected]