1. DN Interruption & Charging
Simon Trivella – 27 March 2008
Distribution Workstream

2. Issues DNPC03 LDZ System Charges Implementation
Failure to Interrupt (GDF Draft Modification)
>15 Days Interruption payment
Ratchet Charges
Interruptible Firm Allowance & Capacity Rights
Consent to Modify (C022)

3. DNPC03 LDZ System Charges Implementation
1st October 2008 Implementation
95:5 Capacity Commodity
Interruptible Capacity Charges (47.37%)
Two options for implementation
Additional Charging functions in UNC TPD Section B1.7
Expanded LDZ Capacity Charge table within Charging Statement

4. DNPC03 LDZ System Charges Implementation
Preferred option to expand Charging Statement
No UNC Modification Required to TPD Section B1.7
“Applicable Annual Rate” definition holds
Transitional Period only
Interruptible Supply Points exempt from Capacity Charges
UNC TPD G6.1.9(a) “…not be required to pay NTS Exit Capacity Charges and LDZ Capacity Charges”
UNC Modification required

5. Failure to Interrupt (GDF Draft Modification)
Currently 1st Day Charge
2 times the Applicable Annual Rate of Firm LDZ Capacity
Introduces 90% charge increase
GDF Proposal
2 times Applicable Annual Rate (47.37%)
Aligned with preferred DNPC03 Implementation Option
Introduces 10% charge decrease

6. Failure to Interrupt (GDF Draft Modification)
Alternative Solution
2 times the difference between the Firm and the Interruptible Applicable Annual Rate
2 x (FAAR – IAAR)
Failure to Interrupt Charge remains the same
Independent from 95:5 (future proof)

7. Failure to Interrupt (GDF Draft Modification)

8. Failure to Interrupt (GDF Draft Modification)
Alternative Solution
UNC Modification to include amendment to UNC TPD G 6.1.9
Enduring Arrangements
UNC TPD G (1st April 2008, effective 1st October 2011
2 x kWh x Z
Z is the greater of the Applicable Annual Rate (LDZ Capacity) and the weighted average Overall Interruption Price
Suggest a review of this following 2008 tender process

9. >15 Days Interruption payment
UNC TPD Section G 6.1.9(b)
User entitlement to a payment
Calculated as prescribed in the Transportation Statement
Currently 1/15th of the ‘avoided charge’
Amended to be 1/15th of the (FAAA – IAAA)
Enduring Arrangements
Payment no longer applicable (1st October 2011)

10. Ratchet Charges UNC TPD Section B 4.7 (Supply Point Ratchet)
Mod 0090 Amendment to B4.7.1 removes ‘Firm’ from eligibility criteria (1st April 2008)
UNC TPD Section B (Transitional Arrangements)
In TPD Section B4.7.1 and 4.7.8(a) the reference to a DM Supply Point Component shall be treated as a reference to a Firm DM Supply Point

11. Interruptible Firm Allowance & Capacity Rights
UNC TPD Section G 1.15
Current ‘IFA’ arrangements
UNC TPD Section G 10.4 (from 1st April 2008)
Current arrangements apply until 1st October 2011
Enduring Arrangements
IFA arrangements cease

12. Interruptible Firm Allowance & Capacity Rights
Interruptible Supply Points no Capacity rights
Transitional Arrangements remain the same
Enduring arrangements – All sites Firm
Interruptible LDZ Capacity Charge
Introduced from Transitional period as a consequence of DNPC03
Interruptible sites remain without Capacity rights

13. Consent to Modify (C022) Amendment to Mod 0090 Legal Text
Removal of superfluous references to the ICM
Defined interruption transition date (1st October 2011)
Defined interruption transition period (1st April 2008)
Renumbering of paragraphs due to non-implementation of Mod 0116V
Other minor changes (summary appendix provided)

14. Thank You
Questions / Comments