Review into the treatment of NGGT’s capacity obligation at Fleetwood under the RIIO-T1 price controls

Correspondence and other

Publication date

Industry sector

Transmission Network

National Grid Gas Transmission (NGGT) is required by its licence to offer entry capacity at Fleetwood. In our Final Proposals for the RIIO-T1 price controls for NGGT, we made an allowance in connection with this entry capacity obligation. At the same time, we said that we will monitor the situation at Fleetwood, and we will take appropriate steps to ensure an economic and efficient outcome is achieved. This may affect the treatment of capacity at Fleetwood and NGGT’s baseline allowances.

In line with our stated intention, we are commencing a review into how the RIIO-T1 price controls treat NGGT’s entry capacity obligation at Fleetwood. We intend to consult formally on our proposals by March 2017 and to make a final decision in early summer 2017. Any changes to NGGT’s licence, including the price control financial model, would take effect before 1 April 2018.

We ask that any stakeholders with relevant information who wish to engage with us on this issue ahead of our consultation please contact Pete Wightman.