We consulted in December 2014 on proposed policy changes relating to National Grid Gas Transmission’s (NGGT) use of Permits Arrangements to vary lead times for the provision of incremental gas transmission capacity. New arrangements for the release of incremental capacity were introduced on 2 February 2015 – the Planning and Advanced Reservation of Capacity Agreements (PARCAs). Consequently the Permit Arrangements are redundant and are no longer needed to manage the risk of incremental capacity signals at the March 2015 QSEC auction.
The December consultation proposed several options to adjust the revenue earned from Permit Arrangements to reflect the fact that permits are no longer needed at the March 2015 QSEC and the reduction in NGGT’s risk. We are now publishing a statutory consultation and Notice outlining the changes we consider necessary to National Grid Gas Transmission’s gas transporter licence to terminate Permit Arrangements and adjust the revenue earned from Permit Arrangements for the period 1 April 2013 – 31 March 2015.
Following consultation and consideration of responses, we intend to publish our final decision in April 2015.