1. Gas Security of Supply SCR Proposals: Credit Implications for the GB Gas Market Introducing a new Transmission Workgroup Topic
4 October 2012

2. The Credit Implications of Ofgem’s Gas SCR Proposals
Ofgem has signalled its intention to press ahead with changes to the GB emergency cash-out arrangements which will see the “short” cash-out price set at £20/th
Centrica believes that these proposals could have far reaching implications for the financial exposure faced by many players within the industry
Affected parties could include gas shippers, traders, National Grid Gas (as system operator), operators of traded markets, banks, and ultimately end consumers
The credit implications stemming from this proposal have not been modelled in Ofgem Regulatory Impact Assessment
Limited consideration has therefore been given to the size of the issue, and how credit arrangements may need to change as a result
Following an approach by us, the Energy Balancing Credit Manager has agreed to lead discussions at future Transmission Workgroups aimed at addressing these and other questions
The purpose of today is simply to draw this topic your attention and invite you to submit early thoughts to