1. Workgroup meeting October 2014
Reform of gas allocations regime at Interconnection Points UNC Modification 0510
Workgroup meeting
October 2014

2. Introduction The Modification Solution covers 3 areas:
Allocation of gas by NG NTS to IP Users equal to their confirmed nominations
NG NTS and the adjacent Transporter to allocate the difference between metered quantities and net aggregate confirmed nominations to an Operational Balancing Account (OBA)
Provision for NG NTS to allocate Users in proportion to measured quantities in some circumstances:
Breach of OBA Steering Tolerance
Exceptional Event
Where NG would otherwise take system management actions 2

3. Recent operational history at IPs
In the last three years at IPs:
No NTS Entry or Exit Constraints have occurred requiring firm capacity buy backs
System management tools used at IPs 9 times (scaleback of interruptible capacity, locational trades, restricting system exit flexibility)
Supply losses have occurred 5 times (all ending prior to 14:00)

4. Illustration of proposed arrangements (1)
NG monitors gas flow vs flow profile (DFNs and OPNs) through Gas Days
Allocate as
nominate
Agreed steering tolerance 1 2 3 4
DFN/OPN Flow profile
Gas Days 4
Cumulative flow profile

5. Proposed arrangements if the Steering Tolerance is breached (2)
NG monitors gas flow vs flow profile (DFNs and OPNs) through Gas Days
NG and adj TSO agree to extend the cumulative steering difference (CSD) beyond tolerance for limited period to enable allocate as nominate on Day 31
Allocate as
nominate
Conversation with adjacent TSO
Agreed steering tolerance 1 2 3 4
DFN/OPN Flow profile
1The EOD CSD determines whether proportional allocation might be considered
Gas Days 5
Cumulative flow profile

6. Proposed arrangements if the Steering Tolerance is breached (3)
NG monitors gas flow vs flow profile (DFNs and OPNs) through Gas Days
Conversation with adjacent TSO
Possible Proportional Allocation1 Gas Day 4
Agreed steering tolerance
NG and adj TSO agree to extend the cumulative steering difference beyond tolerance for limited period-allocate as nominate Day 3
Measured flow and OBA balance (confirmed on Gas Day 5) show unexpected breach in steering tolerance 1 2 3 4
The EOD CSD determines whether proportional allocation might be considered
DFN/OPN Flow profile
1Only if the TSOs cannot agree a further temporary extension of the steering tolerance
Gas Days 6
Cumulative flow profile

7. Proportional allocation
(net) forward flow should be 90 units entry based on noms
Say measured flow = 80 units, then virtual reverse flow allocations remain whole and forward flow allocations are proportionate to the forward flow Confirmed Quantities: IP
NG NTS network
Adjacent TSO
network
Physical flow direction
NTS entry Confirmed Quantities
NTS Exit Confirmed Quantities
A 20 units
B 30 units
C 10 units
D 40 units
100 total
E 2 units
F 3 units
G 4 units
H 1 unit
-10 total
A 18 units
B 27 units
C 9 units
D 36 units
90 total
E 2 units
F 3 units
G 4 units
H 1 unit
-10 total 7