Mod 0273: Governance of Feasibility Study Requests to Support Changes to Network Exit Agreements – National Grid NTS Response

Mod 0273 Overview

Raised by E.ON UK Focuses on Feasibility Studies required to change max flow / ramp rate

changes to NTS NExAs, NTS new connections & DN equivalent processes No published timescales for completion of Feasibility Study or

associated Agreement No indicative costs published

Proposes CUSC style formal timescales & costs to introduce: 3 month turnaround of Feasibility Study Fixed costs (with option for users to opt for later reconciliation)

Proposed benefits are: Improved transparency Greater competition via increased flow rates

NG NTS Initial Views

There is confusion over the electricity model deployed The 3 month Connection and Use of System Code (CUSC)

Modification Application process employed in electricity does not include a feasibility/engineering study

Feasibility Study fees are not published in electricity

The gas process needs to be fully understood In comparison to electricity, the number of new connections and

Network Exit Agreement (NExA) changes are relatively few. Receiving quite a few enquiries in a relatively short period can cause workload planning difficulties.

The timescales in gas vary considerably depending on the complexity of the customer requirements/installation

Feasibility and Conceptual Design Studies are important as they are undertaken to meet legislative obligations

Electricity New Connections & Modifications - CUSC Process

A ‘Feasibility Study’ is typically undertaken to help determine the best location for a new connection - limited usage, unregulated service, costs are recovered, no delivery SLA

Fees (fixed & indicative) published for New Connections & Modifications but Feasibility Study costs are not published

Application process ‘clock starts’ when all documentation is received/approved & funds have been paid

Offer timescales: 28 days – 3 months

Feasibility Study

Formal application & Payment cleared

Clock Start Offer Made

Design Stage Acceptance

(Optional)

3 Months 3 MonthsUp to 6 months

but no SLA

Gas Exit Connection Processes

For New Connections an indicative 20 week turn-around is published

Flexibility – the studies undertaken are tailored to suit the particular customer requirements

The costs/timescales of the analysis conducted is calculated accordingly

Typical study timescales and costs:

Characteristic Timescale CostSimple changes/minimum connections 3-6 months £10k to £50K

Semi complex changes/medium size connections 6-12 months £50K+

Complex changes/large connections 12 months+ £100K+

Why is it important we conduct studies?

Rapid load changes during start up and shutdown could affect the efficient and effective operation of the pipeline system

Trigger safety devices and cut off supply at the installation

Cause damage to National Grid equipment at installations such as pressure regulators, filters and orifice plate meters

Adversely affect other Users of the system (entry and exit points) in the vicinity

Legislation

Health and Safety at Work Act etc. 1974

Pressure Systems Safety Regulations (PSSR) 2000

Pipeline Safety Regulations (PSR) 1996

What is involved in conducting a study?

Influencing factors: Customers don’t always know what they want! Customers often experience difficulties in providing the information

requested Difficulties in agreeing Contractual terms (between Customer and NG) Nature of the study Contractor Procurement process Workload planning – NG and Contractors

CustomerEnquiry

Agree studyrequirements

and obtaindata required

ContractsAgreed

NGCommencestudy andengage

contractorsrequired

Studychallenged

andreviewed

Reportissued toCustomer

KeyCustomer Network Design

Contractor Customer Services

Contractorsundertake

Study