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Mod 0273: 1 st Development Group Workshop 4 th February 2010.

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Presentation on theme: "Mod 0273: 1 st Development Group Workshop 4 th February 2010."— Presentation transcript:

1 Mod 0273: 1 st Development Group Workshop 4 th February 2010

2 NG NTS Initial Views (December 2009)  Are comparisons to the electricity model appropriate?  The 3 month Connection and Use of System Code (CUSC) Modification Application process employed in electricity does not include a feasibility study  Feasibility Study fees are not published in electricity  The gas process needs to be fully understood  In comparison to electricity, the number of new connections and Network Exit Agreement (NExA) changes are relatively few  Receiving a number of enquiries in a relatively short period can cause workload planning difficulties  The timescales in gas vary considerably depending on the complexity of the customer requirements/installation  Feasibility Studies are important as they are undertaken to meet legislative obligations

3 Electricity Connections / Modifications Connection & Use of System Code (CUSC) Process

4 Electricity New Connections & Modifications - CUSC Process  The CUSC process offers a 3 stage connection process;  Feasibility Study (If required)  Connection Offer and Acceptance  Physical Connection / Modification Feasibility Study Formal application & Payment cleared Clock Start Sanction Offer Made Connection OfferAcceptance (Optional) 3 Months 6 Months+ Works

5 Electricity New Connections & Modifications - CUSC Process (Cont.) – Feasibility Study  Typically undertaken to help determine the best location for a new connection (e.g. Power Station)  Rarely used (1-2 p.a.) as information quickly becomes out of date and timescales are longer than for formal application process  Unregulated service - all costs are recovered, no delivery SLA  National Grid Daily rates are published but costs of studies may also include contractor costs. The number of hours involved is also not known until the scope is agreed.

6 Electricity New Connections & Modifications - CUSC Process (Cont.) – Design Stage (1)  Formal 3 month process covering New Connections or Modifications to existing contracts  National Grid offers to hold one pre-application meeting  Associated documentation is extensive  ‘Clock starts’ only when all documentation is received/approved & funds have been paid  Modelling analysis work is predominantly conducted “in house” by 40+ engineers  NGET receive a considerable number of applications p.a.  New connections: 40%  Modifications: 60%

7 Electricity New Connections & Modifications - CUSC Process (Cont.) – Design Stage (2)  Fees (fixed & indicative) published for New Connections & Modifications – average £100k, capped at £400K  Offer includes commencement date (fixed) and list of works (can be amended at a later date)  Offer for new connections & modifications made within 3 months  NG can request an extension to the 3 month timescale but this is rarely used  Acceptance;  User has 3 months to accept and only minor changes to contract are allowed  Major changes = new application

8 Gas Connections / Modifications NTS Exit Points with Network Exit Arrangements (NExAs)

9 New Connections & NExA Modification Process (1)  Offering Customers a connection to the NTS or a modification to their existing NExA is a license obligation (LC4B)  New connection & modification processes are undertaken in line with the Statement & Methodology for Connection Charging.  Available via link: 4E F19514F23EC4/35303/SC4BApril2009v30.pdf 4E F19514F23EC4/35303/SC4BApril2009v30.pdf  Statement also includes worked examples of connections with indicative costs:  Conceptual design study for new connection - approx. £30k to £50k  Feasibility study to assess impact of adding a new connection…- up to approx. £150k  Feasibility study for System Extension pipeline (Exit only) - approx. £100k to £400k, depending on pipeline length and route  Users/developers must commit to payment of the cost estimate prior to commencement of the study

10 Acceptance Feasibility Study New Connections & NExA Modification Process (2)  A 3 phase approach is also offered for new exit connections;  Customer Engagement & Feasibility Study (If required)  Design studies  Conceptual  Detailed  Siteworks  Indicative Conceptual design study timescales are provided (on the web) – weeks but it is also explained that it “would be longer for complex projects”  Work is often staged to enable a customer to understand project feasibility, costs and timescales without committing to full costs at the outset Offer Made Conceptual Design (Optional) 6 months 3 Months3-6 months Siteworks Months Detailed Design 6 months

11 New Connections & NExA Modification Process (3)  Modifications include physically moving the exit connection and amending ramp rates/operating pressures  A Feasibility Study maybe required prior to conceptual design and/or construction  For Modifications the scope of a Feasibility Study is ‘flexible’ and tailored to suit the customers requirements but also varies depending on:  the complexity of the project  the size of the installation  Once scope is agreed, the timescales and costs of the (bespoke) Feasibility Study are agreed with the customer upfront (contract)  A Feasibility Study may include;  An Impact Analysis of onsite components & wider network issues  An evaluation of options and any additional analysis as specified / agreed with customer  Indicative timescales & costs for Design & Sitework phases  Further detail to follow

12 Why is it important we conduct analysis within a feasibility study?  Rapid load changes during start up and shutdown could affect the efficient and effective operation of the pipeline system  Trigger safety devices and cut off supply at the installation  Cause damage to National Grid equipment at installations such as pressure regulators, filters and orifice plate meters  Adversely affect other Users of the system (entry and exit points) in the vicinity  Legislation  Health and Safety at Work Act etc  Pressure Systems Safety Regulations (PSSR) 2000  Pipeline Safety Regulations (PSR) 1996  Further detail to follow

13 Typical timescales and costs  Important to remember that there is no such thing as a ‘typical’ project!  Further detail and case studies to follow CharacteristicTimescaleCost Simple changes/minimum connections3-6 months£10k to £50K Semi complex changes/medium size connections6-9 months£50K+ Complex changes/large connections9-12 months£100K+

14 What is involved in conducting a study?  Further detail to follow

15 Further detail  National Grid NTS propose that an Network Design expert should cover certain aspects of the process in detail at March session

16 Problems with current arrangements – NTS perspective  Timing  Indicative timescales are provided, however  Complexity of exit connections/modifications and associated differences in scope make it difficult to define exact timescales upfront  Costs  Indicative costs are provided, however again  Complexity of exit connections/modifications and associated differences in scope make it difficult to define exact costs upfront

17 Problems with current arrangements – NTS perspective  Communication  No visibility of upcoming work (types, number, nature and frequency) - r eceiving a number of enquiries in a relatively short period can cause workload planning difficulties  Process  Some enquiries are speculative in nature  Scope creep is sometimes a problem  Customers don’t always know what they want!  Customers often experience difficulties in providing the information requested, especially if it needs to be provided by their equipment suppliers  Difficulties in agreeing Contractual terms (between Customer and NG)


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