Consultation on our minded-to position on TPCR4 cost reviews and RIIO-T1/GD1 uncertainty mechanisms for enhanced security upgrades

Publication date
31st July 2015
Closing date
1st September 2015
Policy areas

We are seeking views on our minded-to position in respect of:

  • Review of TPCR4 enhanced physical security costs (NGET, NGGT, SHE-T, SPTL)
  • Enhanced physical security costs for RIIO-GD1 price control period 2013-2021 (NGG and SGN)
  • Enhanced physical security costs for RIIO-T1 price control period 2013-2021 (NGET and NGGT).

The proposed adjustments were submitted under NGGD’s Special Condition 3F, NGET’s Special condition 6H and NGGT’s Special condition 5E which deal with the arrangements for the recovery of uncertain costs.

The RIIO-T1/GD1 price controls for 2013-2021 allows the gas distribution and transmission owner network companies to apply to the Authority, by means of a reopener mechanism, to adjust their allowed expenditure to accommodate additional costs relating to the enhanced physical security upgrades at sites.

The network operators may propose relevant adjustments during two defined application windows, May 2015 and May 2018, where the amount exceeds the relevant materiality threshold.