1. NG Strawman – Ofgem response
Transmission Workstream 5 Feb 2009

2. Ofgem Response
Ofgem considering wider review of current arrangements but believe the Strawman could be an improvement on the status quo and there is merit in exploring it separately
Given that supply has been tight this winter, if the Strawman is to be a Mod it should be progressed rapidly
There are a number of issues which require further consideration in development of the Strawman…

3. Issues to Consider
Should there be a deadline for placing offers on the OCM?
When would claims be submitted and paid?
Might the three month cost recovery process deter shippers from sourcing additional gas?
On what basis are claims assessed?
No single model (FSC, Black Start, Network Code Modification Proposals) upon which to base changes
Should claimants be paid for losses incurred or according to a “market value” of gas?
Recommend a working group is established to develop proposal/guidelines
Should short shippers be targeted with marginal or average cost of validated claims?