Final decision on NGGTs application under the RIIO-T1 Compressor Emissions uncertainty mechanism
Decision
Publication date
Industry sector
Transmission Network
In RIIO-T1 we introduced an uncertainty mechanism in order to provide more time for NGGT to develop its approach in response to the Industrial Emissions Directive. This would ensure that funding was matched to the needs case and improved deliverability by better alignment of funding with actual project expenditure. We received NGGT’s submission on 15 May 2015, under Special Condition 5E of NGGT’s gas transporter licence for the uncertain cost category of Industrial emissions.
On 31 July 2015 we consulted on our proposals to reject NGGT’s bid for additional funding because it had not fulfilled the specific requirements we set out for the re-opener submission. In particular it had not included a comprehensive cost benefit analysis, clearly identifying all assumptions made. We received 3 responses to our consultation which did not provide a clear consensus of views about our proposals. In accordance with paragraph 5E.13 of Special Condition 5E of NGGT’s Gas Transporter licence, we have decided to reject NGGT’s application for additional funding.