Exit capacity substitution concerns the permanent shift of NTS Exit (Flat) Capacity from an NTS Exit Point or NTS Exit Points with unsold baseline exit capacity to an NTS Exit Point where incremental NTS Exit (Flat) Capacity in excess of baseline has been requested.
National Grid Gas (NGG) in its role as holder of the Gas Transportation Licence in respect of the NTS is obliged, in accordance with Special Condition C8E paragraph 4, to prepare and submit to the Authority for approval, an exit capacity substitution methodology statement and an exit capacity revision methodology statement which shall be applied for the purposes of fulfilling NGG’s obligation in respect of exit capacity release (C8E paragraph 3(c)).
On 23 February 2009 the Authority directed that NGG should submit its proposed methodology statements no later than 4 January 2011. As part of its decision, the Authority also required NGG to submit two interim reports, the first no later than 30 April 2010, on the progress towards preparation of the exit capacity and substitution methodologies, together with an assessment of its ability to ensure that implementation can be achieved.
In respect of this requirement, on 27 April 2010, NGG submitted a report titled ‘Interim Report on the Development of an Exit Capacity Substitution and Revision Methodology. A copy of this report is available on NGG’s website at the following location:
http://www.nationalgrid.com/uk/Gas/Charges/statements/transportation/ExCapSubMS