Gas Transmission Charging Review: Confirmation of policy view and next steps
Decision
Publication date
Industry sector
- Transmission Network
- Generation and Wholesale Market
The Gas Transmission Charging Review (GTCR) is our review of gas transmission entry charging arrangements in Great Britain (GB). The aim of the GTCR is to ensure that we have in place arrangements that facilitate the provision of a safe, secure, high quality transmission network service at value for money to existing and future consumers.
Our consultation on 12 December 2014 and our impact assessment on 30 January 2015 proposed two key changes. We now confirm our policy view and recommendations on next steps. This marks the end of the analytical work undertaken via GTCR and a transition to preparing to implement emerging EU legislation to harmonise transmission charges, the Network Code on Tariffs (TAR NC).
-
We maintain our policy position supporting the introduction of ‘floating’ capacity charges for entry capacity including long-term capacity products at all entry points (domestic, with the exception of storage users, and interconnection points (IPs)). Our initial view is that the alternative, a ‘dual regime’ consisting of floating charges at IPs only (as mandated by TAR NC) combined with the existing ‘fixed capacity + variable commodity’ regime at domestic entry points, would be challenging to implement and that it is likely to add significant complexity to the charging arrangements. However, we consider that the timing is not right to proceed to floating capacity charges at all entry points at this point. We invite NGGT and the industry to explore the following two linked work streams;
-
the technical and economic feasibility of a dual regime; and
-
the practical aspects of moving to a regime with floating capacity charges at all entry points, taking into account the currently unclear aspects of the TAR NC.
-
- We maintain our policy position supporting the reduction the reserve price discounts for short-term entry capacity products.