Baselines determine the minimum quantities of entry capacity that National Grid Gas (NGG) must offer for sale and underpin the financial incentives on NGG to invest to expand the amount of entry capacity on the gas National Transmission System (NTS) in response to signals and financial commitments.
Ofgem reset the baseline levels of entry capacity for the gas NTS as part of the 2007-12 Transmission Price Control Review (TPCR).
Following the release of the TPCR Final Proposals document it became apparent that there were significant concerns from a number of industry participants regarding revisions to the baseline levels between the Updated TPCR proposals published in September 2006 and the Final Proposals in December 2006.
Having considered this matter further and in view of concerns that have been expressed, Ofgem considered that it should re-consult on the baseline figures as implemented in the March 2007 Decision, and reconsider the matter.