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Force Majeure & payment of Exit Charges Jeff Chandler - 6 th October 2011 Transmission Workgroup - Elexon 1.

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Presentation on theme: "Force Majeure & payment of Exit Charges Jeff Chandler - 6 th October 2011 Transmission Workgroup - Elexon 1."— Presentation transcript:

1 Force Majeure & payment of Exit Charges Jeff Chandler - 6 th October 2011 Transmission Workgroup - Elexon 1

2 2 1.NGG issued a FM notice on 14 th September in accordance with B3.3.1 of the UNC. 2.Affected feeder 14, downstream of Tockington & will require cessation of flows for a minimum of 3 weeks. 3.As a result Seabank 2 power station will have no firm exit capacity made available for the period but will have to pay charges for the first 7 days (TPD section J 3.6.1). 4.Mod 349: Introduction of a Force Majeure ( Entry) Capacity Management Arrangement, was directed to be implemented by Ofgem on 16 th August Effectively 0349 mod ensures that when FM is called, Entry capacity charges are reimbursed from Day 1. 6.There is a difference of 7 days before reimbursement of capacity charges for FM events between Entry and Exit. Is this equitable? Rational for Raising a Modification

3 3 Change (TPD section J 3.6.1) such that capacity charges are reimbursed from day 1 of notification of an FM event and not day 7, whereby, aligning Exit & Entry FM capacity arrangements. Intended Outcome

4 4 Enabling better facilitation of Relevant Objective (a) efficient & economic operation of the pipe-line system: The proposal will require that National Grid NTS share the risk and cost that is currently borne completely by affected Shippers and is likely to assist in reducing any perception that there is an incentive to call Force Majeure. Relevant Objectives

5 5 1.Does the modification facilitate the achievement of the relevant objectives, efficient & economic operation of the pipeline system? 2.Impact on systems? 3.User Pays? Specific Areas for WorkGroup to Develop

6 Notification of Force Majeure by Fax Jeff Chandler - 6 th October 2011 Transmission Workgroup - Elexon 6

7 7 1.NGG tried to issue a FM notice on 14 th September in accordance with B3.3.1 of the UNC – by fax. Correct Fax number but message was corrupted, several attempts required before message received. 2.Did not receive the fax on 16 th September, stating FM started at Received by e mail on 21 st September. 4.Question reliability of using faxes. Better communication by , text. 5.Why do we use faxes in the gas industry? 6.Raise a mod to change all notifications to ? 7.What section of the UNC? Notification by Fax


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