1. Code Governance Review UNC Modification Proposals
Ritchard Hewitt - National Grid NTS

2. Background – Code Governance Review (CGR)
Ofgem announced the Review of Industry Code Governance in November 2007
Code Governance Review (CGR) concluded at the end of March 2010 when Ofgem published their Final Proposals
The licence modifications necessary to implement the Final Proposals for the CGR and the Code of Practice (CoP) were published on 3 June 2010 and become effective on the 31 December 2010

3. Background – Review Group 0267
Review Group 0267 “Review of UNC Governance Arrangements” raised October 2009
The Joint Office of Gas Transporters (JO), has been working with the industry on the necessary modifications to the UNC via the Governance Workstream
National Grid volunteered to raise all the necessary governance modifications to implement the CGR Final Proposals
National Grid have committed to liase with the industry in development of the proposals

4. Transmission Workstream – objectives of presentation
Raise awareness of approach and timetable for developing the CGR UNC Modification Proposals
Provide an overview of the content of each Modification Proposal
Facilitate the provision of feedback
Modification Proposals will be updated and formally raised for August Panel – consultation

5. Alternatives
Aspect of the Code of Practice (CoP) - the approach to be taken when raising alternatives to Modification Proposals:
alternative solutions being developed to the same degree as an original solution; and
alternative proposals are raised prior to or during the working group stage.
No alternatives (or further alternatives) can be raised once a Modification has been issued for Consultation

6. Role of Code Administrators & Code of Practice - 0319
The CGR Final Proposals require that code administrators:
Act as a ‘critical friend’, in particular to small participants; and
Act consistently with the Code Administrator Code of Practice.
Other key elements:
Ofgem send back powers
Published reasons for Panel recommendations (based on relevant objectives)
Legal text provision
Cost information

7. Appointment and Voting Rights for a Consumer Representative and Independent Panel Chair - 0320
Main elements of proposal 0320:
Option for the National Consumer Council & Authority to each appoint one Consumer Representative
Consumer Representatives to become Voting Members
Appointment of an Independent chair’s and provision of a casting vote where panel determinations are at stalemate
Not applicable for recommendations on whether or not to implement mods

8. Environment 0321
Evaluation of proposed modifications shall include assessment of the quantifiable impact on “greenhouse gas emissions”
Details to be included in reports produced during progression of the proposal

9. Charging Methodologies – 0322 (NTS) / 0325 (DN)
Two proposals
NTS Charging Methodology and Connection Charging Methodology
Distribution Network Charging Methodology
Key elements:
Existing methodology (to be detailed in Appendix A) is incorporated within the Uniform Network Code
UNC Modification Rules are amended to reflect that:
a change to the Charging Methodology is not able to be made unless the requirements of the UNC Modification Rules are complied with
the Transporters must convene regular meetings of the charging methodology forum/s
a Modification Proposal in respect of a UNC Charging Methodology may only be made by a UNC signatory or a Materially Affected Party (being a person or class of persons designated by the Authority for this purpose)

10. Self-Governance (‘SG’) 0323
UNC Modification Rules change
3 main elements of proposal:
Panel able to recommend to Authority that Panel can take implementation decisions for non-material mods
Authority also able to designate ‘self governance’ mods & approve / reject Panel recommendations
Appeals Process

11. Significant Code Review (‘SCR’) 0324
UNC Modification Rules change
Main elements of proposal:
Once an SCR has started any non-urgent mods seeking to change same section of UNC as SCR are ‘suspended’
Panel submits decision to Authority to subsume mod into SCR or allow to progress individually
Once SCR is complete related mods are ‘unsuspended’

12. Summary Number Title 0318 Alternatives 0319
Role of Code Administrators and CoP
0320
Appointment and Voting rights for a Consumer Rep and Independent chair
0321
Environmental assessment
0322
NTS Charging methodologies
0323
Self Governance
0324
Significant Code Reviews
0325
DN Charging methodologies