We are consulting on the implementation of two decisions:
We propose to revise the Special Conditions of NGGT’s Gas Transporter Licence, GT1 Price Control Financial Model (PCFM) and Financial Handbook to reflect the introduction of PARCAs and the reduction in NGGT revenue allowances. We intend for the PCFM revisions to be decided on in time for their inclusion in the next price control Annual Iteration Process, due to conclude on 30 November 2018.
The introduction of PARCAs requires functional modifications to the PCFM, which we consider are material. Nonetheless, we expect that these modifications will have only a negligible effect on NGGT allowed revenues. On the contrary, we estimate the PCFM changes to reflect the decision on Fleetwood will reduce NGGT revenue by approximately £47 million during the RIIO-GT1 price control.