Modification of Special Conditions 1A and 5F of National Grid Gas plc’s Gas Transporter Licence to facilitate implementation of the Capacity Allocation Mechanisms Network Code

Licence modification

One of the most important pieces of recent legislation on European gas and electricity markets is referred to as the Third Package. The Third Package of European energy reforms created a new legal framework to promote cross-border trade. Part of this, the Gas Regulation, sets out procedures for the establishment of a number of legally binding network codes. These network codes are designed to promote the creation of liquid markets, the efficient use of cross-border transmission capacity and the integration between Member States’ gas markets.
 
The Network Code on Capacity Allocation Mechanisms in Gas Transmission Systems (CAM) came into force on 3 November 2013 and applies from 1 November 2015. Any changes to ensure compliance of the Great Britain (GB) legal and regulatory framework with the provisions of the CAM network code must be made by 1 November 2015.

We published an open letter in October 2013 that described some of the issues around implementation that were specific to GB. In June 2014 we published our minded to position on the modifications that the Authority proposed to make to the Gas Transporter Licence that National Grid Gas plc (NGG) holds in respect of the NTS in order to facilitate the implementation of CAM. The statutory consultation on our proposed changes closed in January 2015.

We are now publishing our final decision on changes to NGG's NTS licence that we consider necessary to facilitate the implementation of CAM. These changes will take effect from 8 April 2015.