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Constraint management

Find out how we manage gas constraint actions. You can access materials to help you understand localised system management. Where appropriate, we will notify users of actions being taken via ANS.

Constraint management actions

We use a range of system management tools to manage localised requirements as described in the System Management Principles Statement. We will notify users of actions being taken via ANS, where appropriate. Constraint management actions are as follows:

Short-term system flexibility (OPN request)

We will notify users via active notification system (ANS) messages if we believe we may not be able to accommodate requests for short-term system flexibility in one or more Exit Zone(s).  Read more about our short-term system flexibility allocation methodology in this document: 

Short-Term System Flexibility Allocation Methodology document

Scalebacks

We may scale back users’ off-peak/interruptible capacity if a constraint is forecast or experienced. Capacity that has been scaled back may be restored if the constraint has been resolved. Read more about the off-peak/interruptible capacity scaleback and restoration process in this document:

Off-Peak NTS Capacity Scaleback and Restoration Process document

Firm capacity surrender (buy-back)

We may ask users for offers to surrender their firm capacity if a constraint is forecast or experienced. Read more about the firm capacity surrender process in this document: 

Firm NTS Exit Capacity Surrender Process document

Offtake flow reductions

We may ask users for offers to deliver offtake flow reductions if a constraint is forecast or experienced. An offtake flow reduction is a reduction in flow at an offtake, relative to the prevailing OPN, for part or all of the gas day. Read more about the offtake flow reduction process in this document:

Offtake Flow Reduction Process document 

Locational energy actions

We may ask users for offers for locational energy actions if a constraint is forecast or experienced. Read more about the locational energy actions process in this document:

Locational Energy Actions Process document 

Incentives

We are incentivised to minimise the cost of constraint management through the constraint management incentive. Through this incentive, we are exposed to 44% of the costs of constraint management up to a cap (£20m) and collar (£60m) on costs/revenues (both values in 2009/10 prices).  

Additionally, sales of non-obligated capacity feed into the incentive as a revenue, as do sales of obligated capacity on the day, sales of interruptible capacity, and shipper overruns. Therefore, we are incentivised to maximise the sales of capacity, but may be exposed to the costs of capacity buybacks if we sell too much.

There is a target cost associated with the incentive each year of £22m (in 2009/10 prices). If we keep constraint management costs below this figure then we will receive a revenue from the incentive whereas if costs are higher than an incentive, a penalty is incurred.

Capacity

How we handle entry and exit capacity, including how to bid for entry capacity and apply for exit capacity, as well as current and historical capacity data.

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Balancing

How we keep the system within safe operating limits, including acting as residual balancer to influence the matching of supply and demand.

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